Pre-Course (Nantwich) Apmp Examination Exercises v8.2 PDF

APMP
Sample Examination
Questions and Answers
Based on
The APM Body of Knowledge 5th Edition
&
The APMP Syllabus 3rd Edition
APMP - Sample Examination Questions and Answers
Document History
Date Revision Details
st
October 2006 1 version of the document
Version 1.0
December 2006 Various typographical errors corrected throughout.
st
Version 2.0 Section 2 Examination Guidance 1 paragraph under The Examination updated to reflect
current practice. Section 1.1 Q2 Answer. Updated to reflect the need to use the processes in
each of the lifecycle phases. Section 1.2 Q1 Answer. Additional responsibilities included
under monitoring and controlling the plan. Portfolio Management BoK section 1.3 title in
answers section moved to correct page. Section 1.5 Q1 Answer. Final sentence added to the
rd
Concept phase paragraph. Section 2.1 Q2 Answer. 3 paragraph from the end. Critical
success factors changed to success criteria. Section 2.2 Q1 Answer. Extended to show
alternative view of stakeholder diagram as per the BoK. Section 2.4 Q2 Answer. Amended to
include schedule and budget acceptance criteria and context deleted. Section 2.5 Q2
Answer. Final paragraph added to suggest giving values to low, medium and high etc. Section
3.1 Q1 Answer. Link between WBS and CBS added. Section 3.2 Q 1 critical path statement
corrected. Section 3.2 Q5 Question and answer. Progress and slippage removed from
milestone chart. Section 5.1 Q1 Answer. Constraints added to the list. Section 6.1 Q2
Answer. Changed to reflect the APM BoK life-cycle instead of BS6079. Section 7.3 Q2
Answer. Reference to Tuckman made more explicit.
December 2006 Section 3.6 Q2 Answer. Arithmetic error on calculation corrected and interpretation of results
Version 3.0 updated (Final Planned Duration now correct at 23 months).
December 2006 Section 3.3 Q2 Answer. Free float corrected on task H.
Version 4.0
February 2007 Section 2.Examination Guidance. Key Words: explanations of Describe and Explain
Version 5.0 expanded to reinforce APM guidance; How good to I have to be: 56% changed to 55% to
reinforce APM pass mark; Answering the questions: 1 1.5 sides per question changed to 1.5
2 sides per question. These changes reflect feedback from APM Assessor. Section 3.3
Questions 2, 3, and 4 and associated answers. Question changed to reflect Section 3.2 Q2, 3
and 4. Section 3.2 & 3.3 Q1 Answer. Amended Gantt chart to show total and free float correctly
for Task J. Section 3.5 Q1 Answer. Reformatted to reinforce the fact that 5 points have been
made. Section 6.7 Q3 Answer. Paragraph 2, line 3 functional changed to matrix
July 2007 Section 3.3 Q1 Duration of Task E corrected (network unaffected). Section 3.2 Q1 and 3.3 Q1
Version 6.0 Answer - description of critical path corrected (diagram unchanged). Section 2.5 (Project Risk
Management) two new questions and answers added.
March 2008 Section 3.3 Q2 day 9 changed to Week 9 in both question and answer
Version 7.0
April 2009 Question styles updated to reflect list, state, describe and explain. Section 1.1 Q2 Q&A
Version 8.0 updated. Section 1.2 Q2 Q&A updated. Section 1.3 Q1 updated. Section 1.4 Q2 Q&A updated.
Section 1.5 Q1 Q&A updated. Section 1.6 Q1 Q&A updated. Section 2.1 Q1 Q&A updated.
Section 2.4 Q1 Q&A updated, Q2 modified. Section 2.5 Q1 updated. Section 2.5 Q2 Q&A
updated. Section 2.5 Q3 and Q4 updated. Section 2.6 Q2 Q&A updated. Section 2.7 New
question 2 added. Section 3.1 Q2 Q&A updated. Section 3.2 and 3.3 Questions 1 to 4
combined and answers grids improved. Section 3.4 Q1 Q&A updated. Section 3.4 Q2 Q&A
updated. Section 3.5 Q2 Answer layout improved. Section 3.6 two new questions added.
Section 3.7 Q1 Q&A updated. Section 3.7 Q2 Q&A updated. Section 3.8 Q1 Question updated.
Section 4.1 Q1 Q&A updated. Section 4.7 Q1 and Q2 question style updated. Section 5.1
answer updated. Section 5.1 Q2 Q&A updated. Section 6.1 Q1 answer layout improved.
Section 6.1 Q2 Q&A updated. Section 6.5 Q1 updated. Section 6.7 Q&As 1, 2 and 3 updated.
Section 6.9 Q1 Q&A updated. Section 6.9 Q2 Q&A updated. Section 7.1 Q1 & Q2 Q&A
updated. Section 7.2 Q1 and Q2 Q&A updated. Section 7.3 Q2 updated. Section 7.4 Q2
updated and answer re-formatted.
May 2011 V8.1 3.2 Q5 Answer diagram corrected
July 2011 V8.2 3.6 Q5 Question clarified
Copyright David W Atkinson 2011

No part of this document may be reproduced for anything other than personal use unless express permission is
obtained from the author.
Disclaimer:
rd
The questions set within this booklet reflect the learning objectives of the APMP Syllabus 3 Edition associated with
the 5th Edition of the APM Body of Knowledge. The answers given are not model answers, rather they are sample
answers which if submitted in an examination would, in the opinion of the author result in a good pass. However, no
liability whatsoever will be accepted for a candidates success, or otherwise, in the examination, by the author.
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Contents
Section 1 Introduction ...................................................................................... 1

Section 2 Examination Guidance ..................................................................... 2
The Examination .....................................................................................................................2
Key Words ..............................................................................................................................2
Hints and Tips .........................................................................................................................3
Section 3 Sample Questions ............................................................................ 7
Project Management - BoK Topic 1.1.....................................................................................7
Programme Management - BoK Topic 1.2 .............................................................................8
Portfolio Management - BoK Topic 1.3...................................................................................9
Project Context - BoK Topic 1.4 ...........................................................................................10
Project Sponsorship - BoK Topic 1.5....................................................................................11
Project Office - BoK Topic 1.6 ..............................................................................................12
Project Success & Benefits Management - BoK Topic 2.1 ..................................................13
Stakeholder Management - BoK Topic 2.2 ..........................................................................14
Project Management Plan - BoK Topic 2.4 ..........................................................................15
Project Risk Management - BoK Topic 2.5 ..........................................................................16
Project Quality Management - BoK Topic 2.6 ......................................................................17
Health, Safety and Environmental Management - BoK Topic 2.7 ........................................18
Scope management - BoK Topic 3.1....................................................................................19
Scheduling - BoK Topic 3.2 ..................................................................................................20
Resource Management - BoK Topic 3.3 ..............................................................................26
Budgeting and Cost Management - BoK Topic 3.4 ..............................................................27
Change Control - BoK Topic 3.5...........................................................................................28
Earned Value Management - BoK Topic 3.6 ........................................................................29
Information Management and Reporting - BoK Topic 3.7 ....................................................32
Issue Management - BoK Topic 3.8 .....................................................................................33
Requirements Management - BoK Topic 4.1 .......................................................................34
Estimating - BoK Topic 4.3 ...................................................................................................35
Configuration Management - BoK Topic 4.7 ........................................................................36
Business Case - BoK Topic 5.1 ............................................................................................37
Procurement - BoK Topic 5.4 ...............................................................................................38
Project Life Cycles - BoK Topic 6.1 ......................................................................................39
Handover and Closeout - BoK Topic 6.5 ..............................................................................40
Project Reviews - BoK Topic 6.6 ..........................................................................................41
Organisation - BoK Topic 6.7 ...............................................................................................42
Organisational Roles - BoK Topic 6.8 ..................................................................................43
Methods and Procedures - BoK Topic 6.9 ...........................................................................44
Communication - BoK Topic 7.1 ...........................................................................................46
Teamwork - BoK Topic 7.2 ...................................................................................................47
Leadership - BoK Topic 7.3 ..................................................................................................48
Conflict Management - BoK Topic 7.4 ..................................................................................49
Negotiation - BoK Topic 7.5 ..................................................................................................50
Section 4 Sample Answers ............................................................................ 51
Project Management - BoK Topic 1.1...................................................................................51
Programme Management - BoK Topic 1.2 ...........................................................................54
Portfolio Management BoK Topic 1.3 ................................................................................57
Project Context - BoK Topic 1.4 ...........................................................................................58
Project Sponsorship - BoK Topic 1.5....................................................................................60
Project Office - BoK Topic 1.6 ..............................................................................................62
Project Success & Benefits Management - BoK Topic 2.1 ..................................................63
Stakeholder Management - BoK Topic 2.2 ..........................................................................65
Project Management Plan - BoK Topic 2.4 ..........................................................................69
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Project Risk Management - BoK Topic 2.5 ..........................................................................71

Project Quality Management - BoK Topic 2.6 ......................................................................78
Health, Safety and Environmental Management - BoK Topic 2.7 ........................................81
Scope management - BoK Topic 3.1....................................................................................85
Scheduling - BoK Topic 3.2 ..................................................................................................87
Resource Management - BoK Topic 3.3 ........................................................................... 117
Budgeting and Cost Management - BoK Topic 3.4 ........................................................... 119
Change Control - BoK Topic 3.5........................................................................................ 122
Earned Value Management - BoK Topic 3.6 ..................................................................... 124
Information Management and Reporting - BoK Topic 3.7 ................................................. 133
Issue Management - BoK Topic 3.8 .................................................................................. 135
Requirements Management - BoK Topic 4.1 .................................................................... 136
Estimating - BoK Topic 4.3 ................................................................................................ 138
Configuration Management - BoK Topic 4.7 ..................................................................... 140
Business Case - BoK Topic 5.1 ......................................................................................... 142
Procurement - BoK Topic 5.4 ............................................................................................ 144
Project Life Cycles - BoK Topic 6.1 ................................................................................... 147
Handover and Closeout - BoK Topic 6.5 ........................................................................... 150
Project Reviews - BoK Topic 6.6 ....................................................................................... 152
Organisation - BoK Topic 6.7 ............................................................................................ 153
Organisational Roles - BoK Topic 6.8 ............................................................................... 156
Methods and Procedures - BoK Topic 6.9 ........................................................................ 157
Governance of a Project - BoK Topic 6.10 ........................................................................ 160
Communication - BoK Topic 7.1 ........................................................................................ 162
Teamwork - BoK Topic 7.2 ................................................................................................ 164
Leadership - BoK Topic 7.3 ............................................................................................... 166
Conflict Management - BoK Topic 7.4 ............................................................................... 169
Negotiation - BoK Topic 7.5 ............................................................................................... 172
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Section 1 Introduction
This booklet is aimed at helping all those intending to take the APMP
Examinations. The booklet has been written to support the syllabus based on
the APMs 5th Edition of the Body of Knowledge.
David Atkinson is a project management professional specialising, for the last
ten years, in training and consultancy. Prior to that his career encompassed a
wide range of projects implementing telecoms and data systems in the UK
and overseas, specialising in structured cabling systems design and
installation.
A member of the APM since 2000 David holds the APMs Practitioner
Qualification and regularly acts as an Assessor or Facilitator at the PQ
Assessment Centres. He is a Registered PRINCE2TM Practitioner and former
examiner and holds the Practitioner qualification for MSP (Managing
Successful Programmes).
The questions set within this booklet reflect the learning objectives of the
APMP Syllabus 3rd Edition associated with the 5th Edition of the APM Body of
Knowledge. The answers given are not model answers, rather they are
sample answers which if submitted in an examination would, in the opinion of
the author result in a good pass. However, no liability whatsoever will be
accepted for a candidates success, or otherwise, in the examination, by the
author.
The booklet is designed to be used by the candidate as part of her/his
preparation for the examination, be that attending a recognised APMP training
course or through a period of self study. It is also expected that the candidate
will have studied the syllabus and APMs 5th Edition of the Body of
Knowledge.
Each section of The Body of Knowledge (BoK) contains a list of further
reading. Whilst it is not necessary for candidates to have studied all the
cross-references some further reading is encouraged.
Section 2 of this booklet contains some hints and tips on examination
technique and also defines the key examination words (such as list or
explain). Section 3 contains the text from the syllabus for each relevant
section of the BoK and the exam style questions for that topic. Section 4
contains the sample answers.
There is a considerable amount of information available that can be
downloaded from the APMs website relating to the examination and the
syllabus. The web address is: www.apm.org.uk
It only remains to wish you Good Luck with the examination!
PRINCE2 is a Trade Mark of the Office of Government Commerce
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Section 2 Examination Guidance

The Examination
The APMP examination is a three-hour closed book examination. The paper
contains 16 questions, each related to one of the 37 syllabus topics. You
must answer 10 of them. There will be a maximum of two and a minimum of
one numeric question(s) on any paper. All topics are examined equally. It is
unlikely that you will have to draw a network diagram. However, you may
have to interpret one and draw a Gantt chart, histogram and S curve.
Each question is worth 50 marks giving a total score of 500.
To gain a pass you must achieve an aggregate score of 55% - i.e. 275 marks
from 500.
If you have any special requirements contact either the APM Qualifications
and Accreditation Department, or your training provider, in plenty of time so
that the appropriate arrangements can be made. Remember that in some
cases a medical certificate may be required.
If you are studying for the APMP qualification but have PRINCE2 then you
may be completing the APMPPL course in which case the examination is 2
hours and 6 questions must be answered from 10. The pass mark is 55% -
i.e. 165 from 300)
Key Words
When setting examination questions the APM have standard definitions for
these four words: list, state, describe and explain, described below.
List.
When a question starts List four. you are expected to make a simple
list of four items. You dont have to expand, give an explanation, or
discuss the list you have made. If the question asks for a list of four
things then give no more than four, if it asks for six, give a list of no more
than six. If you give more than the required number they will not be
marked.
State.
When a question starts State.. you are expected to write a single
sentence to summarise the point being made. For example if the question
was State 4 benefits of using a Product Breakdown Structure your
answer might be (for one of the benefits): A PBS helps to defined the
scope of the project; if a product is mentioned it is within scope, if it isnt
then it wont be part of the project i.e. it would be out of scope.
Describe.
When a question starts Describe you are expected to write a short
paragraph summarising each point made. The APM state that this would
be more than one sentence. So I would expect you to write 2 or 3
sentences.
Explain.
Questions starting with Explain. require you to write a detailed
explanation of the topic in question. The APM state that this requires 2 or
more sentences for each point made. I would therefore expect you to
write a paragraph consisting of 2 to 5 sentences perhaps including a
relevant example of the point being made. It may be useful to draw a
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diagram to help with the explanation. If there are specific points within the
marking scheme for a diagram this will be stated in the question, e.g.
include an appropriately labeled diagram in your answer.
There are occasions where the question asks you to list and then describe.
In this case the best way to answer the question is to make the list first and
then describe them in separate paragraphs. Remember to reference each
paragraph to the relevant point in the list.
Hints and Tips

Taking an examination is, for most people, a nerve racking and stressful
experience especially when ones job or promotion prospects rely on a
successful outcome. This is often the case for candidates sitting APMP.
The following is a list of hints and tips that I have been passing on to my
students over the years with some success. They are not listed in any
particular order and if you dont like them, or it goes against your own writing
or examination style ignore them. This is not the time to change your
writing style.
Be prepared
This means do any pre-course reading sent to you by your training provider.
This may be extensive but we send it for a purpose. So often I have heard
the cry Ive not had time, Ive been very busy at work, I only received it
yesterday the latter may be forgiven but on the whole these excuses are
just that excuses.
There is a huge amount of knowledge to absorb for the examination and
whilst you may already have some experience there are bound to be some
areas where your knowledge is lacking in part or in full.
I would recommend that you spend 30 60 minutes each day for 3 weeks
before the examination studying the material you have received.
Make yourself a revision plan and stick to it. If you are having a break
between your course and the examination use the time wisely.
Revision
It may go without saying but the point of revision is to learn and study that
which you dont know. This is a difficult and sometimes depressing activity. I
have seen and heard people continually practising the topics they can do well,
for example, constructing a network diagram and Gantt chart. Whilst this is
very comforting it wont help you in the exam if you havent revised the topics
you dont know.
If you find one topic is just too hard then give it up and move on to another.
You will be examined on 16 topics from 37 and you need to know about 10 of
them, so you can realistically expect to ignore a couple of topics completely.
For example, many of my students have no experience of Earned Value
Analysis. As such they find it a difficult subject to master and it involves some
mathematics and formulae, which some people find scary in itself. In this
instance my advice is to ignore the topic but word extra hard elsewhere.
Remember every time you say I wont bother with this topic you are saying
to yourself Ive got to answer 10 from 15, or 14 or 13 or 12 etc, depending
how many you ignore.
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Try to spend between 1 and 2 hours a day revising. This may mean altering
the family arrangements for a short period but it will be worth it in the end.
Time management in the examination
Within the 3 hours you have to complete 10 questions and that equates to 15
minutes per question plus 30 minutes reading and planning time.
A common failing in an examination is to run out of time. You must discipline
yourself to spend a maximum of 15 minutes on each question. When I
marked examination papers I noticed that the first page usually scored very
well with the candidate getting down all the good stuff s/he knows. Page two
was usually about half as good as page one; candidate running out of steam
now. Subsequent pages, if any, scored very little; the candidate had nothing
left to say and was waffling, repeating him/herself or summarising, none of
which actually scores. It is far better to move on after page 2 and score lots
of marks on a new question.
If the question asks for an explanation that requires 5 points to be made then
that equates to 3 minutes per point made.
If the question has two or more parts then the marks will be split between
them and each 10 marks is worth 3 minutes of your time.
Thus answering the questions will take 2.5 hours. The remaining 30 minutes
should be used firstly to read the paper thoroughly and select your ten
questions say 10 minutes. Use a further 10 to read through your answers,
which leaves 10 minutes for anything you like!
How good do I have to be?
Remember 100% or 55% still result in a pass. It is not graded. There is no
need to get every question 100% correct, neither should you aim for the bare
minimum. I would recommend that you aim for the 75% mark. This is a good
pass and is comfortable, that is, you can still drop a few marks and pass.
This relates closely to the next tip choosing your questions.
Choosing your questions
I recommend the tick, tick, query, query system or ??
Firstly read the paper thoroughly and when you read a question that you just
know you can do well put a against it.
On the second pass put a against your second choice.
Third time around put a ? against the question you would have a go at if you
were really pushed.
That leaves the rest as ?? those you wouldnt try under any
circumstances.
By now with any luck you will have 4 5 question with a where you can
hope to score about 80% each; 2 or 4 with a where you can hope to
score about 60% and 1 4 with a ? where you can hope to score about 45%
each.
If you total that up on the optimistic side you should have:
5 at 80%, 4 and 60% and 1 at 45% giving an overall score of around 68%.
Pessimistically youll have:
4 at 80%, 2 at 60%, 4 at 45% giving an overall score of around 62%.
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In other words you dont have to be brilliant all round!

If you are really struggling and you have to choose a couple of ?? from your
paper do a little mental arithmetic on the marks and go for the one where you
think you will score best.
Answering the Questions
It is not necessary to write volumes to pass but you must take note of the
guidance issued by the APM, given above in Key Words. On average each
question will cover between 1.5 to 2 sides of paper, about 15 to 20 sides in
all.
Start each answer or part answer on a new page, it makes it easy to mark
and keeps you on track.
Dont keep writing! Each point you make should be a new paragraph and that
means leaving 2 or 3 lines gap between the paragraphs. This stops you
waffling on about a single point, keeps you on track, and makes it easy to
mark (no bad thing if you need the benefit of the doubt!)
Make sure any diagrams have a title, are clearly labelled and have a key if
appropriate (e.g. on a network diagram). If you have drawn a graph, clearly
label each axis and state the scale you have used.
Be as neat as you can but dont waste time. Use a ruler when appropriate.
Freehand boxes are perfectly acceptable on a network diagram, for example,
but keep them neat; using a ruler wastes valuable time.
Use short sentences and simple words. Avoid all use of jargon and
acronyms. If you are tempted to use them then explain what they mean.
Remember the examiner can only mark what you have written s/he does
not know that you meant something else as well. If your statement means
more than one thing explain them all.
Avoid using etc, if there is something to say, say it.
Use your own experience when answering the questions. For example, there
are as many project life-cycle definitions, as there are industries and
organisations. They all have a beginning, middle and end but will be phased
differently to suit the organisational needs. So you could start your answer to
a question such as State the purpose of a divided life-cycle and give an
example by stating something like:
I work for ABC Company and our life cycle has the following phases:
inception, definition, delivery, handover, benefits realisation. This
enables.
Finally, answer your questions first, you will gain confidence and you
may realise that one of your ? is in fact a .
Lists of things
One of the most difficult things to do under examination conditions is to make
a list, especially if the list is greater than five. I call this the seven dwarf
syndrome. Ask anybody to name the Seven Dwarfs (from Disneys Snow
White and the Seven Dwarfs) and most people will easily get to four. After
that they just go into a loop and come up with the same names again. If the
person then thinks about something else the brain carries on working,
somewhere in the subconscious and later on more names will pop into the
consciousness. Its also like trying to remember you PIN at the cashpoint.
The harder you try the worse it gets.
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For example there may be a question such as list and briefly describe ten
sections of the project management plan. Questions that ask for a list are
easy, but only if you can remember the list! Questions on the PMP are
relatively easy to answer but it is hard to make such a long list, five is a lot
easier, so I suggest that you read the exam paper there will be topics in the
paper that will have an entry in the PMP, e.g. there may be a question on
stakeholders leading to stakeholder management strategy and
communications plan; there may be a question on risk and that leads to a risk
management strategy and so forth.
Carry on with your list until you can think of no more entries and then move on
to answer the other questions. As things come to you add them to the list and
by the time you come to answer the question the list will be complete (or
almost so). If you can only get to nine dont worry thats 90% if you answer it
properly.
(By the way the dwarfs were called Dopey, Doc, Bashful, Happy, Grumpy,
Sleepy and Sneezy!)
Final Point
Remember to READ THE QUESTION. So many times I have seen people
answer the question they thought they had been asked and Ive done it
myself, even though for years Ive been saying: read the question carefully!
Read the question at least twice and analyse its content. They should be
clear, and it should be obvious what is required.
Good luck!
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Section 3 Sample Questions

Project Management - BoK Topic 1.1
What the syllabus says
Topic Coverage
Compare and contrast projects versus business-as-usual type activities
within an organisation.
The benefits of using project management.
The challenges of using project management within an organisation.
The difference between project management processes as used
throughout the project (such as starting, defining, monitoring and learning)
and the phases of the project life cycle.
Learning Outcomes
Distinguish between project management and business-as-usual.
Explain benefits of project management.
Explain challenges that organisations face when using project
management.
Distinguish between project management processes and the phases of
the project life cycle.
Section 1.1 Q1
Explain five differences between Projects and Business as Usual.
Section 1.1 Q2
a) State the objectives of the four project management processes.
b) For each phase of the project life cycle explain how the project
management processes are used.
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Programme Management - BoK Topic 1.2

Topic Coverage
The characteristics of programme management.
The differences between project management and programme
management.
Programme management and its links to strategic change.
The role and responsibilities of a programme manager.
The benefits of using programme management.
The challenges in using programme management within an organisation.
The differences between programme management and portfolio
management.
Learning Outcomes
Distinguish between programme management and project management.
Describe the role and typical responsibilities of the programme manager.
Explain benefits of programme management.
Explain challenges that organisations face when using programme
management.
Section 1.2 Q1
Explain five typical responsibilities of the Programme Manager throughout the
programme life cycle.
Section 1.2 Q2
Explain five challenges that an organisation will face when using programme
management.
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Portfolio Management - BoK Topic 1.3

Topic Coverage
How portfolio management assists in the prioritisation of projects.
The characteristics of portfolio management.
Risk versus return in relation to why projects are prioritised.
Recognise that the capacity of an organisation to undertake projects is
linked to its available resources and how it forms part of portfolio
management.
Situations where the use of portfolio management is appropriate
Learning Outcomes
Distinguish between portfolio management and project management.
Explain situations where portfolio management would be appropriate.
Section 1.3 Q1
Explain four aspects of portfolio management.
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Project Context - BoK Topic 1.4

Topic Coverage
The need to understand a projects context.
The need to consider the internal and external context (environment) of a
project.
The use of tools such as PESTLE and SWOT.
Learning Outcomes
Describe what is meant by a projects context.
Explain a tool for ascertaining a projects context.
Section 1.4 Q1
Consider a project to build a nuclear power plant in England in an area with
high unemployment, but a large population.
Undertake a preliminary assessment of the projects context.
Section 1.4 Q2
Explain five benefits undertaking an analysis of a projects context.
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Project Sponsorship - BoK Topic 1.5

Topic Coverage
The role and responsibilities of the project sponsor (executive) and how it
changes through the project life cycle.
Why effective project sponsorship is important to project management.
The relationship between the project sponsor and the project manager.
Learning Outcomes
Describe the role and typical responsibilities of the project sponsor
(executive) across a project life cycle.
Explain the importance of project sponsorship in project management.
Section 1.5 Q1
State ten typical responsibilities of the project sponsor during the project life-
cycle.
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Project Office - BoK Topic 1.6

Topic Coverage
The role of the project office.
Different types and functions of project office, some acronyms include
Project Support Office (PSO), Project and Programme Support Office
(PPSO), Programme Management Office (PMO), Enterprise Programme
Management Office (EPMO).
The benefits of using a project office linked to its type and function such
as PSO, PPSO, PMO, EPMO.
The role of project support in project management.
Learning Outcomes
Describe functions that project offices often perform.
Explain benefits of a project office.
Section 1.6 Q1
List and describe five responsibilities of a project office.
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Project Success & Benefits Management - BoK Topic 2.1

Topic Coverage
Success criteria and key performance indicators (KPIs) and their uses in
defining and measuring project success.
The importance of success factors to project management.
Benefits management and how benefits should be realised.
Learning Outcomes
Distinguish between success criteria and success factors.
Explain the relationship between success criteria and KPIs.
Describe benefits management.
Section 2.1 Q1
Explain five elements of benefits management and realisation.
Section 2.1 Q2
Explain the differences between success criteria, success factors and key
performance indicators and give two examples of each.
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Stakeholder Management - BoK Topic 2.2

Topic Coverage
A stakeholder management process (such as identification, analysis,
communications planning, ongoing management).
Tools that can be used in stakeholder analysis such as suitably labelled
axes on a 2x2 or 4x2 grid.
Why stakeholder management should be undertaken.
Learning Outcomes
Describe a stakeholder management process.
Explain the importance of stakeholder management.
Section 2.2 Q1
Explain a process that can be used to analyse stakeholder needs and
expectations and the benefits of such a process. Make four relevant points
and include a diagram that fully illustrates the use of the process.
Section 2.2 Q2
Explain four benefits of stakeholder management and give an example in
each case.
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Project Management Plan - BoK Topic 2.4

Topic Coverage
The typical contents of the Project Management Plan (PMP).
The PMP as the why, what, how, how much, who, when and where for a
project.
Authorship, approval and audience for the PMP.
Who should develop the PMP.
Who should own and update the PMP.
Who needs to read and understand the PMP.
The PMP as a baseline document.
The use of the PMP throughout the project life cycle.
Learning Outcomes
Explain the purpose of a Project Management Plan (PMP).
Describe typical contents of a PMP.
Describe the authorship, ownership and audience of a PMP.
Section 2.4 Q1
List the content of the what, why, when, how, where, who and
financial parts of the PMP.
Section 2.4 Q2
State ten fundamental parts of the project management plan.
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Project Risk Management - BoK Topic 2.5

Topic Coverage
A risk management process such as that described in the APMs PRAM
Guide 2nd edition excluding quantitative analysis i.e. initiate, identify,
assess, plan responses, implement responses and the overarching
manage process.
Risk as threat and opportunity.
Techniques for risk identification such as brainstorming, SWOT analysis,
assumptions analysis, constraints analysis, prompt lists, check lists,
interviews.
The use of a probability and impact grid (matrix) to assess risks.
How should risk ownership be determined and managed.
Basic responses to threats i.e. avoid, reduce, transfer and accept.
Basic responses to opportunities i.e. exploit, enhance, share and accept.
The use of a risk log (register).
Benefits and costs of risk management.
Learning Outcomes
Describe a project risk management process.
Explain each stage of a project risk management process.
Explain benefits of project risk management.
Section 2.5 Q1
Explain five elements of a risk management process.
Section 2.5 Q2
Explain four ways in which a Probability/Impact grid can be used to assess
the importance of a risk to a project. Include a diagram that fully illustrates
the use of the technique.
Section 2.5 Q3
List and describe five responses that can be applied to threats.
Section 2.5 Q4
List and describe five responses that can be applied to opportunities.
Version 8.2
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Project Quality Management - BoK Topic 2.6

Topic Coverage
Quality planning, quality assurance and quality control and continuous
improvement.
The need to manage the quality of the deliverables (products) or service
that a project delivers.
The need to manage the quality of the project management process.
Techniques used in quality planning and assurance such as quality plans,
audit, procedures/checklists
Techniques used in quality control and improvement such as inspection,
Ishikawa diagrams, Pareto analysis, control charts.
The importance of acceptance criteria for each work package.
Benefits and costs of project quality management.
Learning Outcomes
Describe project quality management.
Explain differences between quality planning, quality assurance, quality
control and continuous improvement.
Explain benefits of project quality management.
Section 2.6 Q1
Explain the purpose of five quality management tools and give examples of
when each could be used.
Section 2.6 Q2
Explain five occasions when quality will be particularly relevant within a
project life cycle.
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Health, Safety and Environmental Management - BoK Topic

2.7
Topic Coverage
Purpose of health, safety and environmental (HSE) regulations.
Examples of generally applicable health and safety regulation/guidance
such as COSHH, Management standards for tackling stress at work,
preventing slips and trips at work.
Duty of care for a project manager and team member in health and
safety.
Responsibilities of a project manager regarding health and safety.
Health and safety risk assessment as applicable to project management.
Environmental legislation as applicable to project management such as
noise and statutory nuisance and waste including pollution.
Learning Outcomes
Explain the importance of project health and safety management.
Explain the importance of project environmental management.
Section 2.7 Q1
This question has two parts. Answer both parts.
(a) Explain the overall aim of the Health and Safety at Work, Etc, Act (HSWA)
1974
(b) Explain four specific duties of employers or employees regarding
(HSWA).
Section 2.7 Q2
List and describe five steps of a Health and Safety Risk Assessment.
Version 8.2
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Scope management - BoK Topic 3.1

Topic Coverage
The need for effective scope definition and management.
An example of:
Product Breakdown Structure (PBS).
Work Breakdown Structure (WBS).
Cost Breakdown Structure (CBS).
Organisational Breakdown Structure (OBS).
Responsibility Assignment Matrix (RAM) and how it is constructed.
Features of a work package.
The scope baseline.
The link between the WBS and project scheduling.
Learning Outcomes
Explain scope management.
Describe Product Breakdown Structure (PBS).
Describe Work Breakdown Structure (WBS).
Describe Cost Breakdown Structure (CBS).
Describe Organisational Breakdown Structure (OBS).
Explain the reasons for using a Responsibility Assignment Matrix (RAM).
Section 3.1 Q1
Explain the relationship between the main breakdown structures.
Section 3.1 Q2
a) Explain how a Work Breakdown Structure (WBS) will be constructed and
its purpose in a project. Include a diagram in your answer.
b) List six benefits of using a WBS.
Version 8.2
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Scheduling - BoK Topic 3.2

Topic Coverage
The scheduling process and the use of project schedules.
The precedence (activity-on-node) diagramming technique including
different types of logical dependencies (links) such as finish to start, start
to start and finish to finish.
Basic critical path analysis (only using finish to start dependencies).
The use of total and free float in scheduling.
The use of Gantt (bar) charts.
Durations estimating (overview).
Updating project schedules.
Program Evaluation and Review Technique (PERT) as a method for
estimating activity durations. The PERT formula should be understood but
there is no need to calculate values.
Milestones and milestone progress charts.
Software tools used to create and manage schedules. No particular
software tools need to be known.
Learning Outcomes
Explain how a project schedule is created and maintained.
Demonstrate the use of different techniques for scheduling projects.
Explain advantages and disadvantages of using software tools for
scheduling.
Questions 1 4 below combine aspects of topics 3.2 (scheduling) and 3.3

(resourcing). The questions are intended to let you practise the techniques and if
you can do these then you can do any in the exam. Each part question reflects a
question that could be asked in an examination (although it should be noted that you
are very unlikely to be asked to draw a network). Likely exam scenarios are to be
given a network and asked to find the critical path; to be given an analysed network
and be asked to create a bar chart; to be given a bar chart and a list of resources and
be asked to create a resource histogram and s curve. It is expected that each part
of the question will take about 15 minutes to complete.
Version 8.2
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Section 3.2 Q1
Using the information given in table 1:
a) Draw a network of the activities given in the table; identify the critical path,
the total and free floats.
b) Use the network constructed in part (a) above to draw a bar (Gantt) chart.
Indicate the critical path, total float and free float on the chart.
c) Using the Gantt chart drawn in (b) and the resources shown in the table
draw a resource histogram and cumulative resource curve (S curve).
Note the resources given are the number of resources used per task per
week.
Table 1
Activity Predecessor Duration Resources

(wks)
A - 2 2
B A 4 1
C A 6 3
D C 3 2
E D 3 2
F B 1 1
G F 4 2
H G&E 6 3
J H 3 3
K H 2 1
L K 4 3
M J&L 2 1
Version 8.2
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Section 3.2 Q2
Indicate the free and total float on the chart.
week.
d) What could be done to reduce the peak resource demand on week 9?
Table 2

(wks)
A - 3 3
B - 4 2
C A 2 4
D C 1 4
E B 4 1
F E 5 2
G E 2 3
H D 3 3
J G&F 1 2
K J&H 4 4
L J 6 1
M L&K 3 3
Version 8.2
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Section 3.2 Q3
week.
Table 3

(wks)
A - 4 2
B A 1 4
C B 5 1
D B 3 6
E C 6 3
F E 4 1
G D 2 4
H G 8 2
J F&H 1 2
K G 7 3
L K&J 2 5
M L 3 2
Version 8.2
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Section 3.2 Q4
week.
Table 4

(wks)
A - 4 2
B A 1 1
C A 6 1
D B 2 4
E D 2 3
F C 3 4
G D&F 5 1
H E 4 4
J H 2 3
K G 3 3
L K 4 2
M J&L 5 1
Version 8.2
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Section 3.2 Q5
Explain how a milestone chart is constructed and used. Include an
appropriately labelled diagram.
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Resource Management - BoK Topic 3.3

Topic Coverage
Types of resources such as replenishable and re-usable.
Resource estimating (overview).
Resource allocation.
Resource smoothing (time-limited scheduling) and resource levelling
(resource-limited scheduling).
The concept of splitting activities to assist in resource smoothing and
levelling.
Resource histograms and cumulative S curves.
Software tools used to manage resources. No particular software tools
need to be known.
Learning Outcomes
Describe resource management.
Distinguish between resource smoothing (time-limited scheduling) and
resource levelling (resource-limited scheduling).
Demonstrate use of different resource management techniques.
Section 3.3 Q5
Explain the difference between resource smoothing and resource levelling
and give an example of when each might be used.
Version 8.2
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Budgeting and Cost Management - BoK Topic 3.4

Topic Coverage
The link between cost estimating and budgeting and cost management
(overview).
Planned expenditure.
Commitments and accruals.
Actual expenditure.
Cash flow forecasts.
Forecast out-turn cost.
Cost monitoring and control and cost reporting.
Learning Outcomes
Explain budgeting and cost management.
Explain benefits of budgeting and cost management.
Section 3.4 Q1
a) Explain how an advance payment can be used to assist project cashflow.
b) State three benefits to the supplier/contractor of having an advance
payment.
c) State one benefit the customer can expect if an advance payment is
agreed.
Section 3.4 Q2
a) Explain the difference between commitment and accrual.
b) State four benefits of cost management.
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Change Control - BoK Topic 3.5

Topic Coverage
A change control process.
Change requests and change request forms.
The use of a change log (register).
The importance of change control in preventing scope creep or
requirements creep.
Why does change occur and what are the different types of change.
The increasing cost of making changes through the project life cycle.
The concept of a change freeze.
Responsibilities in change control such as project sponsor, project
manager, change control board.
Links between change control and configuration management.
Learning Outcomes
Describe a change control process.
Explain each stage of a change control process.
Explain reasons for requiring change control on a project.
Section 3.5 Q1
Explain five features of an effective change control process.
Section 3.5 Q2
List five roles that are fundamentally involved in change control and describe
the contribution of each role.
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Earned Value Management - BoK Topic 3.6

Topic Coverage
The principles of Earned Value Management (EVM).
Planned Costs (Budgeted Cost of Work Scheduled - BCWS)
Actual Costs (Actual Cost of Work Performed - ACWP)
Earned Value (Budgeted Cost of Work Performed - BCWP)
Cost Variances (CV) and Schedule Variance (cost) (SV). As defined in
BS6079-1: 2002
Trends and Indices; Cost Performance Index (CPI) and Schedule
Performance Index (cost) (SPI). As defined in BS6079-1: 2002
CPI as a measure of efficiency.
Derive earned value curves from basic data.
Using earned value analysis to forecast out-turn costs and durations.
Why use EVM and what are its advantages and disadvantages.
The link between cumulative resource S curves and planned costs.
Note: examination candidates will not be required to provide definitions of
earned value terms. Only the wording Planned Costs, Actual Costs and
Earned Value will be used in examinations.
Learning Outcomes
Describe Earned Value Management (EVM).
Explain advantages and disadvantages of EVM.
Perform earned value calculations and interpret earned value data.
Version 8.2
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Section 3.6 Q1
Complete the table below calculating the Earned Value (EV), the Efficiency and the % Complete for weeks 4, 8, 12, 16 and 20. What
can you conclude from the results?
NB This will take more than 15 minutes the question to provide practice of the calculations and interpretation of results.
All figures for Budget and Actual costs in Man/Hours
Wk 4 Wk 8 Wk 12 Wk 16 Wk 20
Activity Budget % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency
A 300 20 65 30 85 50 130 80 180 100 240
B 400 15 70 25 120 40 180 60 250 100 420
C 500 10 90 20 200 50 450 70 600 90 750
D 200 5 12 10 23 20 45 50 110 70 155
E 350 0 0 5 20 15 58 40 150 50 180
F 240 0 0 5 14 10 30 30 90 40 115
TOTALS 1990 237 462 893 1380 1860
BAC 1990
Version 8.2
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Section 3.6 Q2
Consider a project with a budget of 1m (BAC). It has a planned duration of
18 months. After 10 months the reported figures are:
Cost Type Amount
Planned Costs 600k
Actual Costs 500k
Earned Value 460k
Calculate CPI, CV, SPI, SV, Final Cost, Final Planned Duration and %
Complete. Comment on the figures you have calculated.
Section 3.6 Q3
Consider a project with a budget of 1.6m (BAC). It has a planned duration of
Cost Type Amount
Planned Costs 700k
Actual Costs 800k
Earned Value 850k
Calculate CPI, CV, SPI, SV, Final Cost, Final Planned Duration and %
Section 3.6 Q4
Explain five benefits of using Earned Value Management.
Section 3.6 Q5
Using the data below:
a) Calculate EV for months 1 - 5, draw the graph showing Budget Curve
and PC for months 1 to 10 and AC and EV for months 1 to 5.
b) Calculate the Final Cost and Final Duration for this project based on the
figures at Month 5.
Month 0 1 2 3 4 5 6 7 8 9 10
PC 0 5 15 30 50 80 120 140 155 165 170 (000s)
AC 0 6 20 35 55 95 (000s)
%C 0 2 7 15 25 40
Version 8.2
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Information Management and Reporting - BoK Topic 3.7

Topic Coverage
An information management system (such as collection, storage,
dissemination, archiving and appropriate destruction of information).
Project reporting and reporting requirements.
A typical project reporting cycle including the gathering of data and
dissemination of reports.
The principles of reporting by exception.
Learning Outcomes
Explain information management.
Explain project reporting.
Section 3.7 Q1
a) State six types of information that a task owner will report on throughout
the project
b) Explain two ways in which the project manager will use the information
stated above.
Section 3.7 Q2
List and describe five reasons for archiving project documentation.
Version 8.2
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Issue Management - BoK Topic 3.8

Topic Coverage
An issue management process (such as identification, escalation,
monitoring/reporting, resolution).
The use of an issue log (register).
The importance of issue management.
Learning Outcomes
Describe issue management.
Explain the importance of issue management.
Section 3.8 Q1
a) State a definition of an issue.
b) Explain four steps of an issue management.
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Requirements Management - BoK Topic 4.1

Topic Coverage
A requirements management process (such as capture, analysis &
prioritisation, testing).
Factors used to structure requirements.
The importance of requirements management and link to scope
management and project quality management.
Learning Outcomes
Describe requirements management.
Explain the importance of requirements management.
Section 4.1 Q1
a) State three elements of a requirements management process.
b) State why requirements management is important.
c) Explain how requirements management is applied across the project life
cycle.
Version 8.2
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Estimating - BoK Topic 4.3

Topic Coverage
Estimating through the project life cycle.
The changing accuracy of estimates through the project life cycle and the
concept of the estimating funnel.
Estimating methods such as bottom up, comparative, parametric.
Estimating durations, resources and costs.
Importance and practical difficulties of estimating.
Three-point estimating and its links to PERT (see scheduling).
Learning Outcomes
Describe practical problems of estimating across the project life cycle.
Explain bottom-up estimating.
Explain comparative estimating.
Explain parametric estimating.
Explain three-point estimating.
Section 4.3 Q1
Explain bottom-up estimating. Include a diagram to illustrate your answer.
Version 8.2
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Configuration Management - BoK Topic 4.7

Topic Coverage
A configuration management process (such as planning, identification,
control, status accounting, audit, close-out)
The principle of a configuration item.
Similarities between configuration management and version control.
Links to change control.
Learning Outcomes
Describe a configuration management process.
Explain reasons for requiring configuration management on a project.
Section 4.7 Q1
Explain five elements of a configuration management process.
Section 4.7Q2
Describe five elements of the link between change control and configuration
management.
Version 8.2
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Business Case - BoK Topic 5.1

Topic Coverage
The purpose of the business case.
The typical contents of the business case.
The business case as the why for the project.
Authorship and ownership of the business case.
Importance and use of a business case during the project life cycle.
The use of investment appraisal techniques such as payback (using non-
discounted figures), Internal Rate of Return (IRR), Net Present Value
(NPV). Excluding the need to explain formulae or to calculate values.
Learning Outcomes
Explain the purpose of a business case.
Describe typical contents of a business case.
Describe the authorship and ownership of a business case.
Explain the use of payback, Net Present Value (NPV) and Internal Rate of
Return (IRR) as investment appraisal techniques.
Section 5.1 Q1
State ten items that will typically be included within the contents of a business
case.
Section 5.1 Q2
Explain the use of Payback, Net Present Value (NPV) and Internal Rate of
Version 8.2
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Procurement - BoK Topic 5.4

Topic Coverage
Procurement in project management.
The purpose and content of a procurement strategy.
Processes for supplier selection.
Different methods of supplier reimbursement, such as firm fixed price
contract, contract target cost, contract target price, cost plus fixed fee
contract, cost reimbursement type contract, cost plus incentive fee
contract.
Types of contractual relationship such as partnering, alliancing and
turnkey contract.
Learning Outcomes
Describe procurement.
Explain typical contents of a procurement strategy.
Explain a supplier selection process.
Distinguish between different methods for supplier reimbursement.
Distinguish between different contractual relationships.
Section Q1
State eight steps that may form part of a simple procurement process..
Section Q2
Explain five payment options and for each option give an example of where it
may be used.
Version 8.2
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Project Life Cycles - BoK Topic 6.1

Topic Coverage
The project life cycle.
Project phases such as concept, definition, implementation, handover and
close-out.
The relationship between phases and stages.
Why split projects into phases e.g. end of phase reviews, go/no go
decisions, high level planning.
The extended life cycle.
Learning Outcomes
Describe a project life cycle.
Explain why projects are split into life cycle phases.
Explain differences between a project life cycle and extended life cycle.
Section 6.1 Q1
Explain five benefits of splitting a project into phases.
Section 6.1 Q2
a) List and describe four phases of the project life cycle.
b) State two benefits of splitting a project into phases.
Version 8.2
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Handover and Closeout - BoK Topic 6.5

Topic Coverage
Typical activities involved in handover and closeout such as preparation,
testing and acceptance of deliverables
Handover to the client, customer, operations, business user.
Formally closing the project.
The importance of handover.
The importance of closeout.
Learning Outcomes
Describe activities involved in handover and closeout.
Explain the importance of project handover.
Explain the importance of project closeout.
Section 6.5 Q1
Explain five elements of a project handover process.
Section 6.5 Q2
Explain five benefits of formally closing a project.
Version 8.2
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Project Reviews - BoK Topic 6.6

Topic Coverage
Different types of reviews including project evaluation reviews, gate
reviews, audits, post-project reviews, benefits realisation reviews.
Importance of project reviews.
The need to learn lessons throughout the project.
Benefits of performing reviews.
Learning Outcomes
Describe project evaluation reviews.
Describe gate reviews.
Describe audits.
Describe post-project reviews.
Describe benefit realisation reviews.
Explain benefits of project reviews.
Section 6.6 Q1
Explain five types of project reviews.
Version 8.2
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Organisation - BoK Topic 6.7

Topic Coverage
Different types of organisation structure (functional, matrix, project).
The advantages and disadvantages of different types of organisational
structure.
The types of projects suited to each type of organisation.
Links between organisation structure, the Organisational Breakdown
Structure (OBS) and the Responsibility Assignment Matrix (RAM).
Learning Outcomes
Distinguish between functional, matrix and project organisation
structures.
Explain advantages and disadvantages of a functional organisation
structures.
Explain advantages and disadvantages of a matrix organisation structures.
Explain advantages and disadvantages of a project organisation
structures.
Section 6.7 Q1
Explain five strengths or weaknesses of managing a project in a matrix type of
organisational structure.
Section 6.7 Q2
Explain five strengths or weaknesses of managing a project in a functional
type of organisational structure.
Section 6.7 Q3
Explain five strengths or weaknesses of managing a project in a project
Version 8.2
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Organisational Roles - BoK Topic 6.8

Topic Coverage
Roles and responsibilities of the project manager, project sponsor
(executive), users, project team members and the project steering group
(project board).
The relationship between the different roles.
Learning Outcomes
Explain the role and typical responsibilities of the project manager.
Explain differences between the role and typical responsibilities of the
project manager and the project sponsor (executive).
Describe the role of users.
Describe the role of project team members.
Describe the role of the project steering group (project board).
Section 6.8 Q1
Explain the main responsibilities of five key project management team roles
Version 8.2
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Methods and Procedures - BoK Topic 6.9

Topic Coverage
Methods and procedures as a means to maintain consistency of project
management practice within an organisation.
Development and maintenance of methods and procedures.
Typical contents of a structured method.
The advantages of using a structured method.
Publicly available methods including PRINCE2.
Links to governance of project management.
Learning Outcomes
Describe typical contents of a structured method.
Explain advantages of adopting a structured method.
Section 6.9 Q1
Explain five topics that could be documented within a project management
method.
Section 6.9 Q2
method.
Version 8.2
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Governance of a Project - BoK Topic 6.10

Topic Coverage
Use Directing Change, a Guide to Governance of Project Management as
a guide to why governance of project management is important and what
principles should be used.
The principles of the governance of project management.
Learning Outcomes
Explain governance of project management.
Describe the principles of governance of project management.
Section 6.10 Q1
(a) State six principles of the governance of project management that would
help avoid common causes of project failure.
(b) For each of two distinct principles stated in part (a), explain the possible
effects of NOT practising them.
Version 8.2
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Communication - BoK Topic 7.1

Topic Coverage
The contents of a communication plan.
The importance of effective communication.
Methods and media that can be used for communication within a project.
The need for two-way communication.
Barriers to communication.
Links between the communication plan and information management and
reporting.
Learning Outcomes
Describe typical contents of a project communication plan.
Explain the importance of effective communication in project
management.
Explain typical barriers to communication and how they may be
overcome.
Section 7.1 Q1
State ten factors that a project manager should consider to ensure that project
communication is effective.
Section 7.1 Q2
Describe six items that will typically be included in a project communication
plan.
Version 8.2
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Teamwork - BoK Topic 7.2

Topic Coverage
Differentiate between groups and teams.
The concept of teamwork.
Team development models such as Tuckman or Katzenbach and Smith.
Features of a high performing team.
Social roles in teams such as Belbin or Parker.
Learning Outcomes
Describe a team development model.
Explain the importance of team development.
Describe a social roles model.
Section 7.2 Q1
a) List nine roles described by Belbin.
b) For each role listed state two strengths and one tolerable weakness.
Section 7.2 Q2
Explain five stages of team development using a recognised model.
Version 8.2
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Leadership - BoK Topic 7.3

Topic Coverage
Impact of leadership on team performance.
Leadership qualities of a project manager.
Motivational theories such as Maslow or Hertzberg.
A situational leadership model such as Hersey and Blanchard.
Learning Outcomes
Describe typical leadership qualities.
Explain principles and importance of motivation.
Describe a situational leadership model.
Section 7.3 Q1
Explain the difference between motivators and hygiene factors.
Section 7.3 Q2
Explain a situational leadership model and show how it may be applied as a
team develops. Include a diagram in your answer.
Version 8.2
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Conflict Management - BoK Topic 7.4

Topic Coverage
Sources of conflict in the project life cycle
Conflict resolution models such as Thomas Kilmann or Russo and Eckler.
Learning Outcomes
Describe sources of conflict in the project life cycle.
Explain a conflict resolution model.
Section 7.4 Q1
Explain five different approaches that could be used in a conflict situation and
give an example of when each approach would be relevant.
Section 7.4 Q2
Explain five impacts of avoiding conflict and not resolving it and include a
relevant example.
Version 8.2
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Negotiation - BoK Topic 7.5

Topic Coverage
The process and stages of negotiation such as preparation, face-to-face
meeting, follow-up.
The importance of preparing for a negotiation.
When will a project manager need to negotiate, including negotiations
with suppliers or contractors, users, resource providers, team members
and the project sponsor.
Learning Outcomes
Describe a negotiation process.
Explain each stage of a negotiation process.
Section 7.5 Q1
Explain four stages that an effective negotiation should progress through.
Version 8.2
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Section 4 Sample Answers

Project Management - BoK Topic 1.1
Section 1.1 Q1
Explain five differences between Projects and Business as Usual.
A project introduces change into an organisation whilst the Business as Usual
(BAU) manages the process. When a project delivers (or hands over) its final
product, be that a new building, IT system, organisational process the
business will change dramatically a step change in the way that things are
done. On the other hand BAU optimises the way things are done the
process and any changes are introduced relatively slowly.
Projects deliver products into the business as described above, after which
the project is usually disbanded. The BAU on the other hand uses the
products of the project to realise the benefits. It is unusual for projects to
deliver any benefits into the organisation during their implementation (unless
there is some form of phased roll-out). The task of benefits realisation
belongs to the BAU and it is fundamental to the success of the project that
this task is given priority and that benefits are realised.
Project managers manage time whereas BAU managers optimise time. In a
project the project manager has to deliver the products within an appropriate
timescale and will take action to make sure the products are delivered on time
this may result in other elements of the project such as cost suffering. The
BAU manager must optimise the timescale within which his/her repetitive
tasks are undertaken to drive out efficiencies within the business.
Projects are inherently risky and project managers need to be risk aware and
manage the risk, reducing it to an acceptable level. No risk means no or little
change and on occasion the project manager will take risks to get things
done on time and on cost. The BAU manager on the other hand generally
looks to reduce risk to its lowest practical level and is often risk averse, and
limits change by concentrating on standard production techniques.
BAU often uses a process of continual improvement to increase the quality of
the service or the product in question. The project manager is responsible for
producing products that conform to a specified standard and whilst s/he will
look to improve the quality of the process, it is the quality of the output that is
the prime concern. The project manager should prevent the team from
continually trying to improve the product if the customer has not specified this,
whilst the BAU manager will see continual improvement as part of his/her
daily routine.
Version 8.2
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Section 1.1 Q2
a) State the objectives of the four project management processes.
b) For each phase of the project life cycle explain how the project
management processes are used.
a) The four processes are:
Starting or initiation process this establishes the outline definition
(what) and reasons (why) for the phase, including the basic team
design and the approach to be adopted in the phase (how).
Defining and planning process builds on the definition, establishes
the scope, and produces the project management plan for approval
essentially adding the who, where and when.
Monitoring and control process sending and receiving information
(monitoring) and taking action/making decisions (control).
Learning and closing process covers handover to the customer and
operational environment, reviewing the way the project was managed
and establishing any lessons for future projects (what went well, what
went badly, what you would do differently).
b) For smaller projects the four processes are aligned to the four phases as
follows:
Starting and Initiation the Concept Phase
Defining and Planning the Definition Phase
Monitoring and Controlling the Implementation Phase
Learning and Closing the Handover and Closeout Phase.
However, for all but the smaller projects (say in excess of 6 months duration),
all the processes are applicable to each phase as follows:
Concept: during concept it is likely that a feasibility study will be required.
Starting and initiating will establish the team and the reason for the phase (i.e.
to establish options, make a recommendation and produce a business case
for the project). Defining and planning will plan the study and the production
of the business case. Monitoring and controlling will ensure the work is
completed on time and budget to the required standard. Finally learning and
closing will hand the completed study and Business Case to the project
sponsor for action.
Definition: during this phase the starting and initiation process is not as
prominent. It will be used to determine that the appropriate resources are
available and ensure that the resources are available to prepare the PMP. It
should be clear why the PMP is required and the purpose it will serve.
Definition and planning is the main process here as this is the key activity in
this phase to define and plan the project. However, the actual activities
associated with preparing the PMP will require planning; once planned they
must be implemented and monitored and controlled. Finally the PMP will be
completed and passed to the sponsor for approval.
Implementation: during this phase the plan is implemented and so the major
process in use will be monitoring and controlling. However, it will be worth
checking that the purpose of the phase is clear, that the plans for managing
the phase are clear. Learning and closing has less impact in this phase,
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unless the phase is split into sub-phases, in which case the outputs of the
phases need to be accepted and lessons learned for future phases.
Handover and Closeout: during this phase the learning and closing process
will be used most. However, it is again important to check that the objectives
of the phase are clear, the plans for managing the phase are understood and
the activities undertaken during the phase will be monitored and controlled.
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Programme Management - BoK Topic 1.2

Section 1.2 Q1
Explain five typical responsibilities of the Programme Manager throughout the
programme life cycle.
Planning. The programme manager is responsible for planning the
programme. This will start at the beginning of the programme by identifying a
list of contributing projects and then having the project managers produce a
plan and schedule for their work. The programme manager takes the outputs
from the projects and, in conjunction with the project managers, identifies the
relationships between the project and their interdependencies. This will result
in a programme plan that can be put into action.
Monitoring and controlling the plan. The programme manager is responsible
for ensuring that the projects produce their outputs on time, on cost to the
appropriate standard. The programme manager will authorise the projects to
proceed after each stage of work and will accept the completed products.
Any problems must be addressed and appropriate action taken. The
programme manager must manage the inter-dependencies between the
projects. This may include starting new projects, stopping projects and
accelerating projects.
Managing communications. The programme manager must make sure that
communications to the programme stakeholders is completed in a timely
manner and that all information required is collated and issued. This not only
includes external stakeholders but those within the programme team and the
projects themselves. The communications will most likely be distilled from the
information being reported from the projects so it is important that the
programme manager specifies his/her requirement for information at the start
of each project (and each project phase).
Managing risks and issues. Risks at project level may well have knock on
effects at programme level because they cause problems for other projects.
As such it is important that the programme manager ensures that the project
manager refers upwards all risks within the project that might affect the
programme. This enables the programme manager to assess these project
risks along with any specifically programme related risks identified in the
normal manner. The risk management process in terms of assessment and
action is largely the same at both levels, although the impacts may be greater
at programme level.
Benefits management. A key responsibility of the programme manager is to
ensure that benefits are realised as a result of the outputs from the projects
being implemented within the business. At the end of each phase of the
programme the manager must make sure that the outputs are accepted by
the business and a formal benefits realisation plan is in place. The
programme manager must make sure that the benefits realisation plan is
developed before the outputs are delivered.
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Section 1.2 Q2
Explain five challenges that an organisation will face when using programme
management.
Risk management. Programmes are risky by nature and the organisation
needs a process to manage risk at all levels throughout the organisation. The
programme will probably be based on a need to undergo a strategic change
within the organisation and this will result in a number of strategic risks being
identified. These risks will cascade down into the programme and the
projects as the causes of the risks are challenged. For example, a delay in
delivering a programme benefit could have serious consequences for the
organisation. The reason for the delay needs to be understood and it is likely
that the root cause and therefore the area that requires mitigation is actually
within the project, e.g. a problem with a supplier. The organisation must be
able to see and manage this cascade. There must also be a process in place
to escalate risks from the project to the programme to the strategic level. The
whole process must be linked with the management of organisational risk
within the organisation.
Resource allocation. Different programmes need different teams and within
any organisation there will be finite resources and this will be especially true
in specialist areas such as IT. The organisation requires a process by which
it can forecast the demand for resources at project, programme and
operational level over the period of the programme. At the strategic level this
must in essence cover a timeframe of at least 12 24 months, 9 18 months
at programme level and 0 9 months at project level. The resource
requirements must be rolled forward on a regular basis, perhaps quarterly.
There needs to be a process that will cater for exceptional demand and a
clear route for escalation and decision making, with individuals clearly made
responsible for these activities and decisions.
Decision making and empowerment. Decisions must be made at all levels
within the programme and its strategic setting. Programme managers,
sponsors and steering groups must be given the authority to make decisions
within the programme. These decisions will cover the commitment of people,
materials and money. Without this level of empowerment delays will occur as
decisions are sought and extra work will be created for managers within the
programme who need to provide the supporting information. This will
inevitably lead to delays, increased costs, and ultimately programme failure.
Change management. Too many programmes too much change. This is
perhaps one of the most serious challenges facing any organisation that has
a series of programmes underway. This is especially the case when the
changes are of a strategic nature and involve changes to way everybody in
the business behaves and undertakes their daily tasks. People are generally
resistant to change and fearful of it. This means that the organisation must
consider how the transition is managed from old to new such that the majority
of the workforce is wholeheartedly behind the change initiatives.
Organisations need to be aware of the effect of too many changes and may
have to revise the portfolio if the best possible outcomes are to be achieved.
Skill Sets. If an organisation is about to introduce programme management
then it is unlikely that the personnel involved will have the necessary skills to
establish and manage a programme, or indeed the projects within it.
Therefore, considerable investment will be required in training the staff to be
programme managers, not only in cost, but also in time terms. This time
delay is likely to be more important as senior managers will want the
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programme to make progress, but will have to wait while the staff are trained
and experience is gained, before the people involved are fully effective.
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Portfolio Management BoK Topic 1.3

Section 1.3 Q1
Explain four aspects of portfolio management.
At its simplest form one organisation would have a single portfolio containing
one or more programmes that supported the strategic vision and intent of the
company. Each programme is then broken down into its constituent projects
all of which will be undertaken in addition to the normal operations of the
organisation. Management of the relationships between the programmes,
projects and Business as Usual (BAU), is normally the responsibility of a
senior management team within the organisation concerned.
Key tasks for this team will be to monitor the resource requirements across
the 3 strands, to ensure that the programmes continue to support the global
strategy and vision, and to ensure that benefits are realised. In particular the
portfolio management team will be concerned with the interdependencies
between programmes and projects in terms of scarce resources, balance
within the portfolio of risks and returns, timing of the outputs and managing
capacity bottlenecks where more than one project requires the same
resource(s) at the same time.
It is probable in many large organisations that whilst there might be an
overarching strategy each function may have its own portfolio. For example
the Sales and Marketing Department may have a number of programmes
running which support their strategic sales vision, each spawning a number of
projects whilst they continue to manage the BAU.
At the same time the Operations Department may have a similar portfolio to
manage. This portfolio may be centred on the business cycle (such as the
companys financial year). The challenges for the operational manager are to
implement a number of projects within his/her budget constraints for people
and money. Typically, this will involve trade-offs between the day-to-day BAU
activities and delivering the projects and prioritising those projects that must
be undertaken. At the operational level the manager will also have the added
challenge of implementing new initiatives from other strategies.
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Project Context - BoK Topic 1.4

Section 1.4 Q1
Consider a project to build a nuclear power plant in England in an area with
high unemployment, but a large population.
Undertake a preliminary assessment of the projects context.
Political
Is there government commitment to nuclear energy; if yes, then project in
sound footing, if unclear then risk increased.
How does the local authority view the project favourable then good news,
against then more risk, and much more work to do on hearts and minds.
What sort of stakeholders will need to be considered in this area? Will they be
positive or negative?
Economic
An area that has high unemployment may consider the relevance of grants,
European funding, central government funding.
Likely to boost local jobs and economy so should engender positive views of
local community.
Social
There is likely to be a mixed response. Some people will see the investment
providing jobs and boosting local economy whereas some may not want the
threat of nuclear power in their area (closely linked to environmental
considerations).
With the current security threat levels there are bound to be concerns in this
area. The project must consider the security implications, make the
appropriate plans, and commit sufficient resource.
Technical
This will use new technology but there is expertise available. The project will
need to ensure proper representation from international suppliers who have
the latest experience in this area. The fact that the technology is new and is
likely to change before the station is built indicates that the project budget
must include for these possible changes and contain sufficient contingency to
cater for unexpected problems.
Legal
There are likely to be legal challenges to the construction from a range of
sources. It will be important to ensure that all areas are investigated and the
appropriate legal team established to deal with challenges that are likely to be
based on environmental concerns and local issues. Consider any relevance
of European legislation affecting nuclear installations.
Environmental
This is an area where there is likely to be the most concerns and where the
majority of the opposition will come from. There are likely to be protests for
anti-nuclear groups, environmental campaigners and so forth. The project will
need to carefully research this aspect and ensure that appropriate security
measures are put in place for people working on the project both in the
planning and delivery phases.
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Section 1.4 Q2
Explain five benefits undertaking an analysis of a projects context.
When the projects context is established the type of project will be known.
This is achieved by analysing what you know about your project.
Project Type WHAT known HOW known
Paint by numbers Yes Yes
Going on a Quest Yes No
Making a Movie No Yes
Walking in the Fog No No
1. Each type of project will need a different approach. For example, paint by
number is straightforward using a standard delivery life-cycle; a quest would
mean a feasibility study(ies) is required; a movie would require investigation
of ways in which to exploit expertise whilst walking in the fog needs small
interim stages to establish the basis for the project itself. This information will
help to set the stakeholder expectations in terms of what can be achieved and
by when.
2. Undertaking a PESTLE analysis will help to identify the risks facing the
project and the main areas of risk. This will help the project sponsor and
project manager best decide who is best placed to own and tackle the risks.
It will also indicate how much of the risk should be escalated to the
programme or strategic level.
3. Similarly, a PESTLE analysis or a What/How analysis (shown above) will
indicate the issues that the project must deal with. This is particularly relevant
to the fog, movie, and quest projects that need to be transformed into paint by
number before progress on actual delivery can be made
4. The results of a PESTLE and What/How analysis may well identify the
options that could be used to satisfy the reasons for the project. These
options can be used as a basis for the business case. Careful considerations
of these options will ensure that the business case is robust and valid before
major commitment is made to the project in terms of both time and money.
5. A PESTLE analysis will help to identify key stakeholders in the project in
each of the areas. This information can be further refined through a
stakeholder analysis to identify how the project will communicate and work
with these stakeholders. Once identified stakeholders may be able to
contribute to further analysis of the projects context.
Failure to consider any of the above factors will significantly increase the
chance of project failure, poor public perception and de-motivated teams.
Other items that could be discussed could include identification of constraints,
dependencies, assumptions and issues.
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Project Sponsorship - BoK Topic 1.5

Section 1.5 Q1
State ten typical responsibilities of the project sponsor during the project life-
cycle.
NB a total of 13 statements have been made here any ten could be used,
Concept phase:
1 During concept the project sponsor (PS) should establish, with the
project manager (PM), the context of the project. This will include
consideration of the political, economic, social, technical, legal and
environmental aspects of the project.
2 Help the PM to design the team, which the PS should confirm and
make sure that adequate resources are made available.
3 During concept the business case for the project must be prepared
and this will require the PS to state the benefits and contribute to its
production.
4 Upon completion the PS will sign off the business case and make
application to the corporate body for agreement to proceed into the Definition
phase. The PS owns the business case and is accountable for delivering the
benefits to the organisation.
Definition phase:
5 During definition the project management plan (PMP) will be produced
and this will incorporate fundamental decisions on risk, plans, budgets and
stakeholder management. The PS will make these decisions and provide
guidance throughout. It is very important that the PS is involved and 100%
committed to the project and this will be demonstrated by his/her involvement
during definition.
6 At the end of definition the PS will make application to the corporate
body for the funding to cover the project and sign off the PMP.
Implementation phase:
7 During implementation the PS will receive the regular progress
reports, resolve issues, chair steering group meetings, and provide advice,
guidance and support to the PM throughout.
8 If the project is staged the PS will be required to authorise the PM to
proceed with the work in the next stage of the implementation phase, normally
at a Gate Review.
9 Another important facet of the PS involvement in implementation will
be making decisions about change requests received and analysed by the
PM.
10 The PS must make sure that arrangements are made to realise the
benefits, and that the benefits are benchmarked during the implementation
stage.
Handover and closeout phase:
11 In this final phase of the project the PS must accept the projects
deliverables after checking and being confident that they have met their
acceptance criteria.
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12 The PS must ensure that s/he understands the amount of outstanding

work and the arrangements that have been made to have it completed.
13 During this phase the PS must complete the arrangements for benefits
realisation with the business areas concerned.
14 The PS must take part in the post project review and sign off the final
project reports.
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Project Office - BoK Topic 1.6

Section 1.6 Q1
List and describe five responsibilities of a project office.
Administration
Preparation of plans
Receive reports and update schedules
Facilitate workshops
Centre of excellence for project management tools
Administration: The amount will vary from maybe 2 or 3 days a week to a
full time role on large projects. It will involve assisting the PM with
administration, completion of minutes of meetings, filing, making travel
arrangements. They will often maintain the risk, issue and change logs or
registers. In a small project this is often a part time function and can be
difficult to justify in terms of headcount and the resources available. For this
reason many organisations have established a formal Project Support Office
(PSO) function.
Preparation of plans: Often a project office will contain staff with planning
skills where they are required to take the output of a planning workshop and
turn that into a Product (or Work) Breakdown Structure, prepare the Network ,
add the estimates and prepare the schedule, highlighting resource
requirements and the critical path. This will involve using planning tools such
as MSProject or Artemis.
Receive reports and update the schedule: Again using tools such as
MSProject or Artemis the project office will receive reports from the teams on
progress and update the schedule accordingly. They will advise the project
manager of any problems that will require his/her intervention. Depending on
the size of the project they may also be using data from accounting systems
such as SAP and providing Earned Value data.
Facilitate workshops: Many project use workshops for topics such as
planning, risk and problem solving. A successful workshop requires a
facilitator and a note taker, both functions that can be undertaken by project
office. The facilitator will run the workshop and the note taker record the
findings. Using project office means that the project manager can take part
as a member rather than being in control and perhaps being seen as trying tio
sway the findings of the workshop.
Centre of excellence for project management tools: Most projects use
complex tools such as MsProject, Artemis, SAP and various risk management
tools. Project office staff can be trained in these specifically to a high level
meaning that the project manager can concentrate on interpreting the results
of these activities and taking appropriate action. The expertise gained in
project office saves the Project manager becoming an expert in everything.
.
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Project Success & Benefits Management - BoK Topic 2.1

Section 2.1 Q1
Explain five elements of benefits management and realisation.
Benefits are tangible or intangible effects of the project that justify the time,
money and resources that are spent on delivering a project. If there are no
benefits then, ideally, there should be no project. If the benefits disappear, for
whatever reason then the project should be stopped. The benefits should be
monitored and maintained throughout the life-cycle of the project and efforts
made to realise them once the project products have been delivered.
However, in many projects, this is overlooked and the projects continue when
no benefits can be identified.
Benefits should be identified by the project sponsor in concept and used as a
basis for the business case. Throughout the definition and implementation
stages the benefits should be further refined and if possible expanded to re-
enforce the business case as the project progresses.
In implementation the benefits should be benchmarked so that there is a
reference point that can be used as a comparison during the realisation of the
benefits. After closure the project sponsor should ensure that the operation
business environment takes on the benefits realisation plan and does all in its
power to ensure the benefits are realised.
Benefits should be measurable. They can be categorised as tangible and
intangible. Hopefully, the main justification for the project will be made on
tangible benefits that can be directly related to a financial measure. For
example staff reductions, reduction in revenue spending on consumables and
so forth. Intangible benefits are more difficult to measure but should be
included so that the whole benefits picture can be understood. They may well
indicate areas where cultural change may be required within the organisation.
This could represent considerable challenges to realise these benefits.
Each benefit identified must be carefully and precisely stated and it is useful
to test the benefits against the DOAM criteria:
DESCRIPTION
o What precisely is this benefit?
OBSERVATION
o What differences should be noticeable between pre- and post-
project?
ATTRIBUTION
o Where will this benefit arise?
MEASUREMENT
o How will the achievement of the benefit be measured?
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Section 2.1 Q2
Explain the differences between success criteria, success factors and key
performance indicators and give two examples of each.
Success criteria are those things, which if met, will indicate that the project
has been successful. Specifically these revolve around time, cost,
quality/performance and the customers requirements. Of these the last is
particularly important. Budgets and timescales are often set in advance, and
the customers requirements and associated acceptance criteria can be
difficult to pin down.
What makes the product/deliverable acceptable to the customer? Indeed
sometimes the question, who is the customer? needs to be answered.
Examples would include:
The project completes within 4 weeks of its target date.
The project completes within 10% of the agreed budget.
Success factors are those things that contribute to the achievement of the
success criteria. Research has indicated that there are five key factors that
can be established against which success can be measured:
Project Objectives
must be clearly identified within the project plans and kept to throughout
the work
Project Personnel
the project manager and the project team must be competent
Support from Above
the project must be supported by top management
Resources
time, money, material and people must be sufficient to do the job
Communication and Control
communications channels up, down and across the project are
established with clear mechanisms for feedback on reports, deliverables
and quality. Control must be in place and used such as milestones,
plans, approvals, reviews etc. Contractors must be responsive to their
clients.
The APM defines Key Performance Indicators as measurable indicators that
will be used to report progress that is chosen to reflect the success criteria of
the project.
The Key Performance Indicators must be carefully chosen to be suitable
measures of the projects success, and they must be clear and unambiguous
to all stakeholders.
Examples could include: Earned Value Analysis to monitor out-turn costs and
durations; quality checking results showing that the products are meeting their
quality criteria and therefore the end result will be what is required by the
customer.
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Stakeholder Management - BoK Topic 2.2

Section 2.2 Q1
Explain a process that can be used to analyse stakeholder needs and
expectations and the benefits of such a process. Make four relevant points
and include a diagram that fully illustrates the use of the process.
Key stakeholders should be identified early within the project life cycle,
mapped and analysed.
This will involve a number of steps:
1. Identify the stakeholders, perhaps through a workshop or other
brainstorming activity.
2. For each stakeholder identified establish his or her main interest in the
project e.g. time, cost, scope, benefit or quality. Not only will this
help to identify how stakeholders are likely to react in the future but will
show what the stakeholders see as the main driver of the project. For
example if the analysis shows a majority of ticks against quality and
none against cost it would show that the main driver is quality and cost
is not a key issue.
3. For each stakeholder identified establish his or her own power and
interest rating on a scale of low, medium and high. It should also be
established whether s/he has a positive or negative attitude towards
the project.
4. The results of the power/interest analysis can be plotted on a grid as
shown below. The grid shows whether the stakeholder should be a
Partner, just kept informed and so forth.
The information relating to main interest area that was gathered earlier can
now be used as a basis of the communications plan, as it will show the type of
information each stakeholder (group) requires. The analysis could also be
used to identify the role the stakeholder should take, if any, on the project
team. It is important to consider the stakeholders positive or negative attitude
towards the project when formulating the plan.
Stakeholder Grid
POTENTIAL
INFLUENCE
INVOLVE / INVOLVE /
HIGH PARTNER
ENGAGE ENGAGE
MEDIUM
INFORM CONSULT CONSULT
LOW INFORM INFORM CONSULT
LOW MEDIUM HIGH

POTENTIAL
INTEREST
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Alternative view of a Stakeholder Grid
Against Project For Project
High
Power
Low
High Low Low High
- Interest +
Stakeholders with high power who are for the project can be used to influence
those who are against the project. Also those who are against must be carefully
managed to either change their perspective, or minimise the adverse effect they can
have.
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Section 2.2 Q2
Explain four benefits of stakeholder management and give an example in
each case.
Risk Management. Once stakeholders are identified and analysed it will help
with the management of risks within the project including their identification
and assessment. For example, if there are a significant number of negative
stakeholders, or a key stakeholder is found to be negative then the risk in the
project will be high. Once this is established it can be mitigated and reduced.
Similarly, if the right stakeholders are brought onto the team then they will
help with risk identification and the risk within the project can be more
accurately assessed.
Communications planning. Not everybody needs to know everything, but
everybody needs to know something. The results of the analysis will define
these key requirements. This is especially true if the key interests of the
stakeholders have been gathered in terms of time, cost, quality, scope and
benefits. Not only can the appropriate level of information be ascertained but
also where the information will come from and how it will be transmitted.
Examples could be email, monthly traffic light reports (showing red, amber,
green status), intranet communications, internet communications. This
information will be key, especially if team members are working remotely and
have limited access to electronic media and broadband connections.
Team formation. Knowing which stakeholders are partners, consultative,
need to be involved/engaged or kept informed, will help to define whether or
not they need a place on the team. The diagram below indicates the
relationships of these groupings. Certainly those seen as partners will play a
key role as suppliers and members of the steering group depending on their
interests and level of seniority. Those in the involve/engage area may need
to be encouraged to be partners. Similarly, if there are many stakeholder
groups that need to be consulted this may mean that the team needs to be
built to complete these activities.
Stakeholder Grid
POTENTIAL
INFLUENCE
INVOLVE / INVOLVE /
HIGH PARTNER
ENGAGE ENGAGE
MEDIUM
INFORM CONSULT CONSULT
LOW INFORM INFORM CONSULT
LOW MEDIUM HIGH

POTENTIAL
INTEREST
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Management actions. Once identified it is possible to apply a further analysis

to the stakeholder to develop a strategy for dealing with the stakeholders
concerned. Basically for each stakeholder, or group, the following information
should be defined:
Their goal
Past reactions
What to expect
Positive/negative impact
Possible reactions to the project.
This information is used to develop a number of strategies to deal with the
reactions of the stakeholder.
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Project Management Plan - BoK Topic 2.4

Section 2.4 Q1
List the content of the what, why, when, how, where, who and
financial parts of the PMP.
What: the detail of the project scope derived from the Product/Work
Breakdown Structures, the Success Criteria and KPIs described in the
Business Case and the Acceptance Criteria noted in the Quality Plan
and Requirements Specification.
Why: The justification for the project described in the Business Case
i.e. the benefits, be they tangible or intangible that outweigh the costs,
time and risks involved.
When: The Project Schedule (Gantt Chart) and Network showing all
the tasks, when they occur, the resources required and the
dependencies between them. It will also show key Project Milestones.
How: This section of the PMP will contain all the strategies for the
project including Health and Safety Plan, Quality Plan, Configuration
and Change Management Procedures, Stakeholder Management
Strategy, Risk Management Strategy, Benefits Management Strategy,
Monitoring and Control strategy (Milestone Charts, Earned Value
Management, Escalation processes)
Where: Location of the teams
Who: The Project Organisation Structure and Job Descriptions.
Financial: Project Budget, Cashflow, Accounting Methods
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Section 2.4 Q2
State ten fundamental parts of the project management plan.
WBS the work breakdown structure will show the tasks that must be
completed in the project in order for the products to be built. It will help all
concerned to see the amount of work required and define the scope of the
project.
Monitoring and control methods this section will define the reporting
structure for the project (monitoring) and the way in which decisions will be
made (control); it will also include an exception process for escalating issues
and define the way the project will be phased (or staged) to give senior
management control over the progress of the project.
Risk management strategy this will define the projects approach to risk, the
processes to be used to identify, analysis and select mitigating actions
including the timing of the analysis, and the way in which mitigating actions
should be managed.
Stakeholder management strategy used to define the process for
identification and analysis of stakeholders and resultant management.
Procurement strategy will define the organisations approach to
procurement in the project e.g. is it formal or informal.
Health and Safety plan used to document the results of the H&S risk
analysis that has been undertaken and the resultant actions.
Change control procedure fundamental part of project control and will
document how change is to be managed, the person(s) responsible for
accepting changes, or otherwise and the limits of their authority.
Configuration management plan will define the way in which the products of
the project will be controlled, baselined, issued for change and released to the
customer. It will include the method of identification to be used and note the
name of the responsible person or group.
Project schedule this defines the high level view of the project in terms of
key milestones and major deliverables. It may be in the form of a high level
Gantt chart.
Project Budget this will reflect the estimated time and cost associated with
the projects WBS and schedule.
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Project Risk Management - BoK Topic 2.5

Section 2.5 Q1
Explain five elements of a risk management process.
Risk management process
Initiate
Manage processes
Identify
Assess
Plan responses
Implement responses
This process is taken from the PRAM Guide. The processes are:
Initiate: During this process the project will be clearly defined so that its
objectives, scope and strategy are understood. The Risk management
process needs definition including establishing the values that are assigned to
probability and impact, the amount of risk that project is prepared to accept
before mitigation (sometimes known as risk tolerance or appetite), the roles
and responsibilities relating to risk (identification, ownership decision making
for example). The risk log should be opened and any interfaces to the
programme (for example) put in place. This information is recorded in the risk
management plan, which is part of the project management plan.
Identify: The project team will identify risks. This could achieved using
brainstorming, assumptions analysis, check lists, prompt lists, SWOT
analysis, lessons learned, constraints analysis or interviews. Once identified
the risks will be entered into the risk log.
Assess: The probability and impact of the risks will be assessed; using the
criteria defined during initiation the importance of the risk is determined and
the results noted on a probability-impact table.
Plan responses: The appropriate response to the risk (threat or opportunity)
is planed and agreed by the sponsor/steering group. This can fall into these
categories: avoid, transfer, reduce, accept, fallback (plan B) for threats or for
opportunities exploit, enhance or plan an option. An owner for the risk must
be assigned.
Implement responses: This final step involves the implementation of the
planned response, adding tasks and resources into the plan to make sure the
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mitigation happen. The risk must now be monitored to make sure it is having
the desired effect.
The final process manage processes ensures that the five processes
described above are having the desired effect and if necessary corrective
action can be taken.
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Section 2.5 Q2
Explain four ways in which a Probability/Impact grid can be used to assess
the importance of a risk to a project. Include a diagram that fully illustrates
the use of the technique.
Probability / Impact Grid Key
Probability Very High Red Risks
High
Medium Amber Risks
Low
Very Low Green Risks
Very Low Low Medium High Very High
Impact
1 A PI grid such as that shown above has a number of uses. However,

before it can be used it must be quantified. The scales of Very Low to Very
High must be established as per the example below.
Impact on Project
Scale Probability
Timescale Cost
Performance
(months) (% Increase)
VLO < 10% <1 < 5% Failure to meet a minor criterion

Failure to meet more than one
LO 10 - 30% 1-2 5 - 10%
minor criterion
Shortfall in meeting
MED 30 - 50% 3-4 10 - 15%
acceptance criteria
Significant shortfall in meeting
HI 50 - 70 % 5-6 15 - 30%
acceptance criteria
VHI > 70% >6 > 30% Failure to meet acceptance criteria
2 The placing of the lines that denote red, amber and green risks must
be done for each project. A red risk is one that must be mitigated and its
probability, impact or both reduced (for threats) so that the assessment goes
into the amber or green area.
An amber risk is one that need not necessarily be mitigated but must
reviewed regularly in case its probability or impact increases, in which case it
must be mitigated.
Risks falling into the green area can be accepted and monitored in case their
probability or impact changes.
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It is possible that placing the lines may be different for time, cost and quality.
If this were the case then it may be preferable to have three PI grids, one for
each impact type. An example of this would be the Olympic Stadium where it
is likely that tolerance of risks adversely affecting time must be mitigated
giving a large area of the grid in the red area whereas cost may not be a
major driver and the red risk area could be smaller.
Whether one or three grids are used the process is the same. The risk is
assessed using the scales, for example a risk could have a high probability,
with a low time impact, a high cost impact and a very high quality impact the
latter two assessments would take the risk into the red risk area. At this
point the risk can be mitigated.
3 The grid can also be used as a reporting tool; all the risks can be
plotted on the grid and the overall level of risk to the project reviewed. Clearly
if there were many red risks it may indicate that the project should not be
undertaken.
4 Values can also be allocated to the Probability and Impact scales, the
fields cross-multiplied to give a score. Typically, values for probability would
be 0.1, 0.3, 0.5, 0.7, and 0.9; for impact values may be 0.05, 0.1, 0.2, 0.4 and
0.8. The probability and impact scores are multiplied together. The larger
the number, the higher priority the risk. This scale weights the result towards
impact. The scores of all the risks can be added together to give a total risk
score for the project.
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Section 2.5 Q3
List and describe five responses that can be applied to threats.
Five possible responses are:
1. Prevent (also known as Avoid or Terminate)
2. Reduce (also known as Treat)
3. Transfer (also known as Share)
4. Contingency (also known as Fallback, Plan B and sometimes Treat)
5. Accept (also known as Absorb or Tolerate)
Preventing a risk from happening in the first place relies on doing something
differently thus avoiding the situation that leads to a risk occurring in the first
place. For example if the risk were related to using a particular type of
technology then using a different solution would prevent that risk. As with all
risk mitigations there may well be risks associated with the new situation
(known as secondary risks). Implementing preventative measures can often
be expensive and may have a detrimental impact on the projects objectives
(because we have changed the solution perhaps) and may not be acceptable
to the stakeholders.
Reducing a risks probability or impact is often used more than prevention and
in some cases whether an action is preventative or reductive may only be a
philosophical debate. In this case some action is taken to reduce either the
probability or the impact of a risk to an acceptable level. For example if there
is a danger of a storage area on site being flooded (probability very high
because it is on the banks of the river) then moving the storage facility to
higher ground (say 1m higher) would reduce the probability of the facility
being flooded to low because the river rarely reaches that level.
Transfer is common practice in many contractual situations. If the customer is

concerned about late delivery because of some factor that is directly under
the control of the contractor the risk is likely to be transferred to the contractor
to manage. In this case it is important to note that the probability and impact
of the risk occurring have not changed merely because the risk has been
transferred. The supplier (in this instance) will have to demonstrate the
measures that will be taken to reduce its probability and/or impact.
Transferring a risk usually increases the contract price. Another form of
transfer is to take out insurance. The insurance company now carries the risk
but again the probability and impact have not been affected. One could argue
that probability is reduced if the risk is transferred to a supplier as it is less
likely to happen and the impact is reduced if the risk is transferred via
insurance as some form of compensation would be payable.
Contingency/Fallback is a plan that comes into force if the risk occurs. An

example of this might be a business continuity plan put in place in the event of
some sort of disaster occurring. If it is decided that contingency is the best
action then the plan must be developed, tested and the trigger for the plan
agreed by all concerned. For example, if there is a risk that the migration to a
new IT system may fail over the weekend then there may be a plan in place
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that states If the system is not working at 3 p.m. on Sunday then the old
system must be reinstated and this is how that is done.
Acceptance is used when the assessment of the risk falls below the tolerance
line for the project. In this case the risk must be regularly monitored to ensure
that if the probability and impact change then appropriate action can be taken.
Most risk actions cost money as they involve taking actions not already
planned. The cost of these actions must be balanced against the cost of the
risk occurring and the monies/time saved by the proposed action(s). It is
common for risks to have a number of mitigating actions, e.g. there may be a
plan to reduce the probability but a contingency/fallback plan may also be
established as well.
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Section 2.5 Q4
List and describe five responses that can be applied to opportunities.
Five possible responses are:
1. Exploit
2. Enhance probability or impact
3. Plan an option
4. Reject
5. Share contractually
1. Exploiting an opportunity involves changing the plan such that the

opportunity will be realised. This will change the project scope in some
manner such that beneficial outcomes are achieved for the stakeholders.
If the contractor can find an opportunity to reduce the time and cost of a
project without affecting the quality then this opportunity would be
exploited. This may result in the benefits being shared with the customer
(but that would depend on the type of contract in place).
2. Enhancing probability or impact requires some form of active response.
For example a strategic response would be to take the opportunity to
design in-house rather than sub-contract the works. Tactical responses
may involve improved resource allocation to potentially reduce costs and
improve efficiencies.
3. Plan an option relates to developing plans that would be implemented if a
project were to develop in a particular manner. For example, there may
be an opportunity to increase the quality or scope of a project if the earlier
works are completed faster than anticipated. This would require the new
plan to be developed in readiness for the anticipated situation.
4. Rejection is the rejection of an opportunity perhaps because the benefits
are small compared to the effort required.
5. Share contractually may be used when the contract permits. If an
opportunity to save money/time is identified then the benefits may be
shared within the contract. This provides an incentive to the contractor to
reduce cost and time without affecting quality; the result being a share in
the savings. A Target Cost/Incentive Fee type of contract would consider
this approach.
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Project Quality Management - BoK Topic 2.6

Section 2.6 Q1
Explain the purpose of five quality management tools and give examples of
when each could be used.
Audits: a review of the project, its management, standards and procedures.
An internal body, such as project support office, or an external auditor, can
undertake the audit depending on the situation. The aim of the audit is to
assist the team to undertake the project in a controlled manner that will aid
the project to deliver right first time. The auditor will prepare a report
documenting the results of the audit and if non-conformances are noted will
normally give a date by which they should be rectified. This will often include
a date for a re-assessment.
This would normally be used as part of the regular project review cycle
perhaps at the end of a stage or phase.
Ishakawa Diagrams (Cause and Effect Analysis): These are also known as
fishbone diagrams where there is an effect, and a range of possible causes
sorted into categories with factors on each bone emanating from the
central backbone. Variants include Influence Diagrams and Mind Maps. In a
quality situation the quality problem would be the head and factors that
contribute to the problem would be categorised and added to the bones.
Once this has been completed a further analysis will be required to see which
bone or group of bones would have the most effect if fixed. This could be
achieved using a Pareto analysis.
This tool could be used when quality problems are being experienced
perhaps a series of complaints about installation problems are being received
from customers and it is necessary to get to the root cause.
Pareto Analysis: Vilfredo Pareto was an Italian economist who, in 1906,
observed that twenty percent of the Italian population owned eighty percent of
the country's total wealth. Ever since then, Pareto's observation has been
used in a variety of ways, and is often referred to as the 80-20 Rule, the "Vital
Few and Trivial Many Rule." or simply Pareto's Principle.
It is of particular use when we have a number of causes and we need to

establish where to put out efforts to solve the majority of the problems quickly
and efficiently. It is used in conjunction with fishbone diagrams.
Thus it is possible to identify those problems (the 20%) that if fixed will have
the most effect (the 80%).
An example would be having established the causes of the complaints we can
quickly see which problem to fix will have the most effect. From experience I
did this and found that the majority of complaints were caused by keep me
informed once we adopted a process that kept the customer informed of
changes to the installation plan the complaints dropped dramatically by 90%
almost overnight. The remaining problems required one off solutions.
Sampling: This is a quality control technique and is used to check that
products meet the quality criteria specified. For example, in a manufacturing
environment the products will be checked every 100 runs.
100% testing: This quality control technique does exactly what it says
everything is tested. For example an installation of telephone sockets in a
large building may mean that 10,000 outlets are installed. The client may
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want all to be tested. However, as this number includes a number of spares

and allows for growth it may be that sampling may be a more cost effective
and adequate approach.
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Section 2.6 Q2
Explain five occasions when quality will be particularly relevant within a
project life cycle.
Beginning:
1 At the start of the project it is necessary to establish the acceptance
criteria for the project. In other words a list of measurable criteria that
determine what will make the projects final product acceptable to the
customer. These criteria must be measurable and examples could include:
delivery date, development cost, elements of functionality, running costs,
reliability, mean time to repair, mean time between failures. The project
sponsor must agree the criteria.
2 Based on these criteria a quality plan for the project should be
prepared and included within the project management plan. This document
will state the acceptance criteria, quality responsibilities and describe the
processes to be used for testing the product. For example, if it were an IT
system this would include, module testing, integration testing, system testing,
user testing and operational testing. It could also include reference to
standards to be used.
Middle:
3 Once the project has been given the go-ahead the products must be
described, either as a product description, or as the output of a task or activity
and described in a statement of work. The description of the product will
include a list of quality criteria that are pertinent to the product. This will
ensure that the product is produced right first time because the producer will
know exactly what is required.
4 As the project progresses the quality tests and checks (quality control)
will be planned into the schedules to reflect the process described in the
project quality plan. These checks will test the products against the products
quality criteria which if achieved will ensure that the projects acceptance
criteria are met. It is important at these points to record the results and watch
for trends particularly of poor performance.
End:
5 At the end of the project it is likely that there will be a final inspection
or test that will demonstrate the quality of the final product. Based on this the
product will be had over to the customer and accepted. The customer will
assess the product against the initial acceptance criteria and if found to be
acceptable will sign for and take responsibility for the projects products.
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Health, Safety and Environmental Management - BoK Topic

2.7
Section 2.7 Q1
This question has two parts. Answer both parts.
(a) Explain the overall aim of the Health and Safety at Work, Etc, Act (HSWA)
1974.
The Health and Safety at Work etc Act 1974 sets out the responsibilities of
employers and employees with regard to safety in the workplace. It provides
the legal umbrella for the various safety regulations that have been developed
for specific industries and activities. The HSWA sets out in broad terms the
duties of those persons with responsibilities for health, safety and welfare
within the workplace.
The Act is also an "enabling Act" allowing Regulations on specific subjects to
be made under the HSWA. These Regulations, and their accompanying
Approved Codes of Practice and Guidance, add detail to the legislation that is
set out in broad statements in the HSWA.
(b) Explain four specific duties of employers or employees regarding
(HSWA).
Duties of employers: (given in full but not required by the question 2
explained)
a. Provide and maintain a safe workplace, plant and equipment.
It is important that the employer makes sure that the workplace is safe
and that any plant and equipment in use is suitably maintained in
accordance with the manufacturers recommendations. This ensures that
any risks associated with the work are reduced to a reasonable level
i.e. ALARP as low as reasonably practicable.
b. Provide safe systems of work.
c. Provide the information, instruction, training and supervision necessary

so that employees endanger neither themselves nor their colleagues.
The employer must make sure that all staff are given the appropriate
training and so forth when they are recruited and when there are changes
to working practices. This will make sure that all understand the
procedures and assuming the employee plays their part will ensure that
the work proceeds in a safe manner.
d. Provide and maintain a safe and healthy environment.
e. Provide suitable facilities and arrangements for the welfare of employees.

Duties of employees: (given in full but not required by the question 2
explained)
a. To take reasonable care while at work for his or her own health and
safety and for that of persons who may be affected by his or her acts or
omissions at work.
The employee must make sure that s/he understands the hazards in the
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workplace, attends safety briefings, does not take risks with procedures
or equipment and act in a responsible manner to ensure the work is
undertaken in a safe manner. Where the employee sees something that
affects the safety of the operation s/he should bring this to the attention of
the employer. The employee should also be aware of others in the
workplace and their safety.
b. To co-operate with the employer on safety matters.
Attending safety briefings, notifying the employer of safety issues and

behaving responsibly ensures that the risks in the workplace are reduced
to the lowest practical level.
c. Not to misuse or damage safety equipment provided by the employer.
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Section 2.7 Q2
List and describe five steps of a Health and Safety Risk Assessment.
The five steps are:

1 Identify the Hazards
2 Decide who might be harmed and how
3 Assess the risk and decide on precautions
4 Record your findings and implement them
5 Review your assessment and update if necessary
Identify the Hazards: This can be done in many ways brainstorming,
inspections, review previous projects/similar situations. A hazard is
something which is capable of causing harm, for example a trailing cable
across a floor presents a trip hazard, a pair of steps presents a fall from
height hazard. You should also ask your employees and you can consult the
HSE website. Your accident records will also provide a useful source of
information.
Decide who might be harmed and how: List the type or group of people
that might be harmed and in what way. For example, people using steps may
overbalance and fall causing injuries that could range from slight to fatal. It is
important to be realistic in these assessments and not to over complicate, or
over emphasise the risks involved.
Assess the risk and decide on precautions: basically, the first option is
can I get rid of the risk altogether. If you can, then do so, but apply common
sense. For example, there is no need to stop providing tea and coffee
because it is hot and might get spilled. A better solution would be to provide
lids for cups if the coffee/tea is to be carried to another part of the office from
the machine. If you cant eliminate risk (or it is not sensible to do so) then
consider the following (if possible in this order):
a. Try a less risky option such as using a water based paint
instead of solvent based.
b. Prevent access to the hazard, by guarding for example
c. Organise work to reduce access and provide suitable work
instructions
d. Provide suitable personal protective equipment (PPE)
e. Provide welfare and first aid facilities
Record your findings and implement them: record your findings in a
suitable register as follows:
What are Who might What are What further Action by Actions by Done
the be harmed you action is whom? when?
hazards? and how? already necessary?
doing?
Then make sure you take the action!
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Review your assessment and update if necessary: Make sure you keep
your assessment up to date by reviewing at an appropriate frequency,
probably annually, or when working practices change.
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Scope management - BoK Topic 3.1

Section 3.1 Q1
Explain the relationship between the main breakdown structures.
Relationships between Breakdown Structures
OBS
RAM
PBS
WBS
CBS
Breakdown structures are related to each other. It can be argued that to

produce a PBS or WBS will first need some form of team to be developed
therefore some form of OBS is required to get the planning process started.
The next step is to produce a PBS and this in itself may well identify products
that require specialise expertise incorporating into the team hence the OBS
will be updated.
Once the PBS is completed a WBS will be produced to identify the tasks
required to build the products. Again the OBS may well be enhanced as the
full skills requirement of the project is identified. As the WBS is produced the
CBS can be started and then finalised when the RAM is produced and the
staff types and charges known.
The refined OBS and the WBS are related to produce a RAM, which then
enables a full CBS to be produced.
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Section 3.1 Q2
c) Explain how a Work Breakdown Structure (WBS) will be constructed and
its purpose in a project. Include a diagram in your answer.
d) List six benefits of using a WBS.
Answer part a)
A WBS is a hierarchical breakdown of the activities that are required to
produce the products described in the product breakdown structure.
It is not strictly necessary to have a PBS available before the WBS is
constructed but it will help. If this is the case then each product will have a
breakdown of activities beneath it. This is shown in the example below. To
produce the site description five tasks are required as shown
Example of a Work Breakdown Structure
Site
description
(A1)
Write site Write site

Go to site Survey site Draw site
visit report description
(A1.1) (A1.2) Plan (A1.3)
(A1.4) (A1.5)
Whilst the top level remains as a product the subsidiary level contains
activities.
Each element of the WBS is numbered and this numbering will remain
constant throughout the project.
Once a WBS has been completed it will become necessary to assign the work
to the teams or personnel responsible for undertaking the work. This results
in a responsibility assignment matrix that is produced by cross referencing the
work and organisation breakdown structures.
Answer part b)
Key benefits of the WBS are:
1. Helps to define the scope of the project
2. Forces the team to think through the production process
3. Forms the basis for precedence networks and estimating
4. Defines the work content
5. Assists in the preparation of SOW (statement of work)
6. Forms the basis of Earned Value calculations by defining the
base data for effort, materials and other resources.
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Scheduling - BoK Topic 3.2

Questions 1 4 below are slightly longer than any you could expect to get in an
exam. It is also likely that the question could be combined with resourcing (see
section 3.15). The questions are intended to let you practice the techniques and if
you can do these then you can do any in the exam. It is expected that they will take
you between 20 and 30 minutes to complete.
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Section 3.2 Q1
a) Draw a network of the activities given in the table; identify the critical path, the total and free floats.
b) Use the network constructed in part (a) above to draw a bar (Gantt) chart. Indicate the critical path, total float and free float on the
chart.
c) Using the Gantt chart drawn in (b) and the resources shown in the table draw a resource histogram and cumulative resource curve
(S curve). Note the resources given are the number of resources used per task per week.
Table 1
Activity Predecessor Duration (wks) Resources

A - 2 2
B A 4 1
C A 6 3
D C 3 2
E D 3 2
F B 1 1
G F 4 2
H G&E 6 3
J H 3 3
K H 2 1
L K 4 3
M J&L 2 1
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Answer Part a) Analysed Network
2 4 6 6 1 7 7 4 11 20 3 23 FF 3
B F G FF 3 J
5 3 9 9 3 10 10 3 14 23 3 26
0 2 2 14 6 20 26 2 28
A H M
0 0 2 14 0 20 26 0 28
2 6 8 8 3 11 11 3 14 20 2 22 22 4 26
C D E K L
2 0 8 8 0 11 11 0 14 20 0 22 22 0 26
Critical Path = A - E & H - K - L - M G & J have Free Float = 3 weeks
KEY
ES D EF ES Earliest Start Time FF 2 Free Float (2 units)

ID EF Earliest Finish Time
LS TF LF LS Latest Start Time
LF Latest Finish Time
D Duration
TF Total Float
Arrow indicates critical path
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Answer Part b) Gant Chart
Wk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
A KEY
B
C Total Float
D
E F Total and Free Float
F
G F F F Critical Path Tasks
H
J F F F Non Critical Path Tasks
K
L
M
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Answer Part c) Gantt Chart with resources
Wk 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
A 2 2
B 1 1 1 1
C 3 3 3 3 3 3
D 2 2 2
E 2 2 2 KEY
F 1
G 2 2 2 2 F F F Total Float
H 3 3 3 3 3 3
J 3 3 3 F F F F Total/Free Float
K 1 1
L 3 3 3 3
M 1 1
`
Men/week 0 2 2 4 4 4 4 4 5 4 4 4 2 2 2 3 3 3 3 3 3 4 4 6 3 3 3 1 1
Cumulative Man Weeks 0 2 4 8 12 16 20 24 29 33 37 41 43 45 47 50 53 56 59 62 65 69 73 79 82 85 88 89 90
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Answer Part c) Resource Histogram
Resource Histogram
5
Man Weeks
4
Men/week
3
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Week Number
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Answer Part c) S Curve
Cumulative "S" Curve
100
90
80
Cumulative Man Weeks
70
60
50 Cumulative Man Weeks
40
30
20
10
0
Week Number
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Section 3.2 Q2 Using the information given in table 2:

chart.
d) What could be done to reduce the peak resource demand on week 9?
Table 2
A - 3 3
B - 4 2
C A 2 4
D C 1 4
E B 4 1
F E 5 2
G E 2 3
H D 3 3
J G&F 1 2
K J&H 4 4
L J 6 1
M L&K 3 3
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3 2 5 5 1 6 6 3 9
C D H FF 5
10 7 12 12 7 13 13 7 16
0 3 3
A
7 7 10 FF 2
14 4 18 20 3 23
FF 3
8 2 10 K M
G 16 2 20 20 0 23
11 3 13
0 4 4 4 4 8 8 5 13 13 1 14 14 6 20
B E F J L
0 0 4 4 0 8 8 0 13 13 0 14 14 0 20
Critical Path = B - E - F - J - L - M Free Floats: G 3 weeks, H 5 weeks, K 2 weeks
KEY

D Duration
TF Total Float
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Wk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
A KEY
B
C Total Float
D
F
G F F F Critical Path Tasks
H F F F F F
J Non Critical Path Tasks
K F F
L
M
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Wk 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
A 3 3 3
B 2 2 2 2
C 4 4
D 4
E 1 1 1 1
F 2 2 2 2 2 KEY
G 3 3 F F F
H 3 3 3 F F F F F Total Float
J 2
K 4 4 4 4 F F F Total/Free Float
L 1 1 1 1 1 1
M 3 3 3
Men/week 0 5 5 5 6 5 5 4 4 8 5 2 2 2 2 5 5 5 5 1 1 3 3 3
Cumulative Man Weeks 0 5 10 15 21 26 31 35 39 47 52 54 56 58 60 65 70 75 80 81 82 85 88 91
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Resource Histogram
9
8
7
6
Man Weeks
5
Men/week
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Week Number
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100
90
80
70
60
50 Cumulative Man Weeks
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Week Number
Answer Part d)
By delaying the start of Task G by 1 week the resource demand for week 9 will reduce from 8 to 5; the resources required on week 11 will
increase from 2 to 5. This will use 1 week of free float of task G (and its total float will also decrease by 1 week).
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Section 3.2 Q3
chart.
Table 3
A - 4 2
B A 1 4
C B 5 1
D B 3 6
E C 6 3
F E 4 1
G D 2 4
H G 8 2
J F&H 1 2
K G 7 3
L K&J 2 5
M L 3 2
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10 7 17 FF 4
K
14 4 21
5 3 8 8 2 10 10 8 18 FF 2
D G H
7 2 10 10 2 12 12 2 20
0 4 4 4 1 5 5 5 10 10 6 16 16 4 20 20 1 21 21 2 23 23 3 26
A B C E F J L M
0 0 4 4 0 5 5 0 10 10 0 16 16 0 20 20 0 21 21 0 23 23 0 26
Critical Path = A - B - C - E - F - J - L - M Free Floats: H 2 weeks, K 4 weeks
KEY

D Duration
TF Total Float
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Wk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
A KEY
B
C Total Float
D
F
G Critical Path Tasks
H F F
J Non Critical Path Tasks
K F F F F
L
M
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Wk 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
A 2 2 2 2
B 4
C 1 1 1 1 1
D 6 6 6
E 3 3 3 3 3 3
F 1 1 1 1 KEY
G 4 4
H 2 2 2 2 2 2 2 2 F F Total Float
J 2
K 3 3 3 3 3 3 3 F F F F F Total/Free Float
L 5 5
M 2 2 2
Men/week 0 2 2 2 2 4 7 7 7 5 5 8 8 8 8 8 8 6 3 1 1 2 5 5 2 2 2
Cumulative Man Weeks 0 2 4 6 8 12 19 26 33 38 43 51 59 67 75 83 91 97 100 101 102 104 109 114 116 118 120
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Resource Histogram
9
8
7
6
Man Weeks
5
Men/week
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Week Number
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140
120
100
80
60
40
20
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Week Number
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Section 3.2 Q4
chart.
Table 4

A - 4 2
B A 1 1
C A 6 1
D B 2 4
E D 2 3
F C 3 4
G D&F 5 1
H E 4 4
J H 2 3
K G 3 3
L K 4 2
M J&L 5 1
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4 6 10 10 3 13 13 5 18 18 3 21 21 4 25
C F G K L
4 0 10 10 0 13 13 0 18 18 0 21 21 0 25
25 5 30
M
25 0 30
0 4 4 4 1 5 5 2 7 7 2 9 9 4 13 13 2 15
A B D E H J
0 0 4 10 6 11 11 6 13 17 10 19 19 10 23 23 10 25 FF 10
Critical Path = A - C - F - G - K - L - M Free Floats: J 10 weeks
KEY

D Duration
TF Total Float
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Wk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
A KEY
B
C Total Float
D
F
G Critical Path Tasks
H
J F F F F F F F F F F Non Critical Path Tasks
K
L
M
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Wk 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
A 2 2 2 2
B 1
C 1 1 1 1 1 1
D 4 4
E 3 3
F 4 4 4 KEY
G 1 1 1 1 1
H 4 4 4 4 Total Float
J 3 3 F F F F F F F F F F
K 3 3 3 F Total/Free Float
L 2 2 2 2
M 1 1 1 1 1
Men/week 0 2 2 2 2 2 5 5 4 4 5 8 8 8 4 4 1 1 1 3 3 3 2 2 2 2 1 1 1 1 1
Cumulative Man Weeks 0 2 4 6 8 10 15 20 24 28 33 41 49 57 61 65 66 67 68 71 74 77 79 81 83 85 86 87 88 89 90
Version 8.2
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Resource Histogram
9
8
7
6
Man Weeks
5
Men/week
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Week Number
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90
80
70
60
50
40
30
20
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Week Number
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Section 3.2 Q5
Explain how a milestone chart is constructed and used. Include an
appropriately labelled diagram.
Forecast/Actual Weeks
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
3
Date Milestone
Forecasted this
4 period/Actual
Date
5
Forecast Date
6
for Milestone
Completion
7
Monitoring 8
Period Original
9
Milestone
Forecast Date
10
Completion Line
11
12
13
14
15
16
17
18
19
20
NB although this answer covers many pages in an exam situation small

sketches of the diagrams shown would be acceptable.
Example milestone chart
A milestone chart is formed by plotting plan time across the top of the chart
and real time down the side shown as monitoring periods. In the example
above the monitoring periods occur every 4 weeks. By plotting the monitoring
period against plan time the completion line is created. This represents time
in the project. The milestones are scheduled at the top of the chart and each
monitoring period the date for the milestone is plotted. The points in the
future are shown with a different symbol. The resulting charts are extremely
useful for senior management as they provide, at a glance, a view of how well
the project is progressing.
The charts have four basic shapes as shown and discusses below.
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Milestone Chart Interpretation 1

Forecast/Actual W eeks
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
Monitoring 8
Period
9
10
Completion Line
11
12
13
14
15
16
17
18
19
20
In this project something clearly happened between monitoring periods

3 and 4 to cause a 6-week delay in the project perhaps a change was
authorised? In any event the situation came under control again and
no further slippage occurred.
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0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
Monitoring 8
Period
9
10
Completion Line
11
12
13
14
15
16
17
18
19
20
This chart has been prepared at monitoring period 5 (note the different
shapes of the forecast dates). The chart shows significant slippage on
the middle two milestones and yet the end date remains unchanged.
As all milestones ultimately link to the final milestone this should be
challenged as it would seem unlikely that any project could contain that
amount of delay and yet still complete on time.
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Forecast/Actual Weeks
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
Monitoring 8
Period
9
10
Completion Line
11
12
13
14
15
16
17
18
19
20
This is a classic case of just too late. The milestone has been
forecasted as on time until just before it completes when it slips a
month. This is often due to poor reporting from the teams where the
team has reported what the PM wants to hear rather than the actual
state of progress. Action should be taken to encourage the teams to
report accurately and honestly throughout the project.
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0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
Monitoring 8
Period
9
10
Completion Line
11
12
13
14
15
16
17
18
19
20
This project is out of control!
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Resource Management - BoK Topic 3.3

Section 3.3 Q5
Explain the difference between smoothing and levelling and give an example
of when each might be used.
NB the diagrams contained within this explanation are more complex than
those that you would have time to complete in an exam situation. They do
however illustrate the technique. In the examination simple sketches would
be more appropriate.
Resource smoothing is used when the time is critical and the end date should
not be missed. In this instance the available float is used to move tasks within
their float to obtain the smoothest histogram. The down side of this is that as
the float is used so the risk of not completing the project is increased.
However, assuming the resources have the capability for the work concerned,
the time taken for team communication is reduced within a smaller team
resulting in lower costs.
The diagrams below indicate this technique.
Resource Smoothing before
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
Activity G
Activity H
Total Resource/Day 1 1 2 2 2 3 3 2 2 2 2 2 1 1 1 1 1 1 1
Resource 3 F F
Resource 2 G G G G G G G G H H
Resource 1 A A B B B B B C C C C C C D D E E E E
Resource Smoothing after

Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
Activity G
Activity H
Resource 3
Resource 2 G G G G G G G G H H F F
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Resource Levelling
If, however, the project is resource limited then there may be insufficient
resources available to complete the work as initially planned. In this case
resource levelling techniques must be used. Again this does assume that
resources have the capability to undertake all the works. The tasks are
moved to reduce the resources required, but this often results in the end date
moving out in time.
The diagrams below indicate this technique.
Resource Levelling before
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
Activity G
Activity H
Resource 3 F F F F
Resource 2 G G G G G G G G H H
Resource Levelling after

Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
Activity G
Activity H
Total Resource/Day 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1
Resource 3
Resource 2 G G G G G G G G H H F F F F
Resource 1 A A B B B B B C C C C C C D D E E E E E
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Budgeting and Cost Management - BoK Topic 3.4

Section 3.4 Q1
d) Explain how an advance payment can be used to assist project cashflow.
e) State three benefits to the supplier/contractor of having an advance
payment.
f) State one benefit the customer can expect if an advance payment is
agreed.
Answer Part a)
Cost
Cost profile
Income
Time
No advance payment example

In the example above the solid line represents the cumulative cashflow (cost
profile) over the project. The dotted line represents the payments that have
been made (income). Where the solid line is above the dotted line this
indicates that the project is in deficit and money must be borrowed to fund the
project. This is often the case for suppliers in a project and in this situation
they may have difficulty funding the project and go into liquidation due to
cashflow problems.
Advance payment example
Cost Income
Cost profile
Time
In the example above (advance payment example) and advance is made and
the regular payments made into the project. In this instance the income is
always above the cost profile and therefore no borrowing is required.
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Answer part b)
This is especially good for suppliers as they will be cash positive throughout,
Their payment risks are virtually nil and they may be able to invest the spare
funds thereby raising extra investment income.
Contractors may be able to negotiate good terms with their suppliers as they
are in a position to negotiate favourable payments terms.
Answer part c)
If this method was used it would be reasonable to expect the supplier to
reduce their price as they are not carrying any payment risks, are cash
positive and not likely to have cashflow problems during the project.
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Section 3.4 Q2
a) Explain the difference between commitment and accrual.
b) State four benefits of cost management.
Answer part a)
In a cash accounting environment entries are made into the accounts when
funds are paid or received for the goods/services in question.
This gives a simple picture if the state of the projects finances but does not
indicate any commitment or accrual that are relevant.
In an accrual based environment the entries are made into the projects
accounts when the goods or service is received. This means that the liability
to pay for the goods/services has already been made and the accounts will
reflect the state of the projects finances assuming all has been paid. This
helps the project manager to accurately forecast cashflow for the project.
In a commitment based environment the entries are based on when the
contract is let or the order made. In other words the funds for that set of
goods or services are effectively withdrawn from the projects accounts and
put in reserve so that the commitment can be honoured at a future date. This
means that the cashflow must be carefully managed as the funds in the
accounts may not actually be available for use in between the commitment
and the actual date the payment is made.
Answer part b)
Benefits of cost management include the ability to:
1. Accurately forecast cashflow, so that borrowing requirements are
known, understood and controlled.
2. Ensure payment milestones are placed in a manner that supports the
schedule of work reducing negative balances to a minimum.
3. Maximise the opportunities to receive advance payments that can be
used to finance future work, reducing the borrowing requirement and
maximising profits.
4. Reduce risks associated with payments and costs, thereby affording
the opportunity to reduce the contingency allowances within the
project budget.
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Change Control - BoK Topic 3.5

Section 3.5 Q1
Explain five features of an effective change control process.
a) Change form. An effective process must have a means of entry and some
form of change request form achieves this. Depending on the industry
this may be called a variation order, request for architects instruction
or request for engineering instruction. The form will contain
information such as: Date; author; description of request; priority;
impact of the change; date required by.
b) Change log. The change request is logged within the change log and this
provides a full audit trail for the project of all the changes. It will
include information such as: Change number; description of the
change; author of request; date received; date evaluated; date
decision made; decision; implementation date; status.
This enables any person to evaluate the status of changes within the
project.
c) Evaluation and prioritisation. Each change request needs to be evaluated
and assigned a priority such as 1 a must, 2 important, 3 nice-to-
have/cosmetic or 4 no change required. The following question
could be asked about the change itself:
* Is it possible?
* Is it customer requested, or self inflicted?
* If not customer requested, is it really necessary?
* What is the cost?
* Who will pay?
* How will progress be affected?
* What are the risks?
* What is the effect on the Business Case?
* How will safety, reliability and performance be affected?
* Will it affect work completed?
* What documentation needs to change?
* Should (and can) the change wait until after the current project
ends?
d) Decision-making. There should be a defined person or group authorised to
agree to implement changes. This could include a formal change
control board, the sponsor, the project manager and the team
managers. Authority is often delegated at various levels, for example,
the PM may be able to accept changes not exceeding 5% of the
project budget, no single change to exceed 5,000 or causing more
than 3 days delay. A similar formula would be defined for the different
levels within the project organisation.
e) Change budget. If change control is to work efficiently then there must be
some form of change budget available. Otherwise each and every
change will result in a request to the funding body for additional funds
to cover the changes. Including provisional and prime cost sums in
the contract would be one type of change budget or a percentage of
the total cost set aside for change, e.g. 15%.
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Section 3.5 Q2
List five roles that are fundamentally involved in change control and describe
the contribution of each role.
Five roles are:
Project Manager
Project Sponsor
Steering Group
Users
Supplier
Project Manager. The PM will be responsible for ensuring that the change
requests are logged and that the change log is kept updated throughout the
project. (Often this will be delegated to project support office.) Once the
change request is received the PM will have to analyse the change, asking a
range of questions to establish what is actually required, how much it will cost,
the effect of the change on the schedule and budget, the benefits and risks
associated with the change. Once this analysis is complete the PM will pass
the change onto the body authorised to agree the change, or otherwise.
Sponsor. The sponsor will be the focal point for decision making on change
issues. S/he will sign off the change control process and will often take the
role of authorising body. In any event the sponsor will chair the steering
group. The sponsor will discuss the change with the user and decide whether
the change can be justified. It is likely that the sponsor will control the change
budget.
Steering group. Often the steering group will act as a change control board.
This forum has the authority to accept or reject changes (or put the on the
pending pile). Chaired by the sponsor, the board will examine the PMs
analysis of the situation and make decisions about the change.
User. The user community will often be the prime source of change requests.
They will be required to justify the change and provide the benefits
information so that the PM can evaluate the cost benefit balance when s/he
has obtained the costs for the change.
Supplier. The supplier can raise change requests although these are likely to
be internal and raised to correct problems during the build process and
therefore not chargeable to the customer. The supplier will also examine
customer change requests and provide the time and cost information required
by the PM as part of his/her analysis. Income from change requests can form
a key part of the suppliers profit and care must be taken to ensure that the
costs obtained are fully justified. This risk could be limited by asking the
supplier to include a schedule of rates within their bid.
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Earned Value Management - BoK Topic 3.6

Section 3.6 Q1
Complete the table below calculating the Earned Value (EV), the Efficiency and the % Complete for weeks 4, 8, 12, 16 and 20. What
can you conclude from the results?
NB This will take more than 15 minutes the question to provide practice of the calculations and interpretation of results.
Solution:
All figures for Budget and Actual costs in Man/Hours
Wk 4 Wk 8 Wk 12 Wk 16 Wk
Wk 20
20
Activity Budget % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency
A 300 20 65 60 92.3% 30 85 90 105.9% 50 130 150 115.4% 80 180 240 133.3% 100 240 300 125.0%
B 400 15 70 60 85.7% 25 120 100 83.3% 40 180 160 88.9% 60 250 240 96.0% 100 420 400 95.2%
C 500 10 90 50 55.6% 20 200 100 50.0% 50 450 250 55.6% 70 600 350 58.3% 90 750 450 60.0%
D 200 5 12 10 83.3% 10 23 20 87.0% 20 45 40 88.9% 50 110 100 90.9% 70 155 140 90.3%
E 350 0 0 0 5 20 17.5 87.5% 15 58 52.5 90.5% 40 150 140 93.3% 50 180 175 97.2%
F 240 0 0 0 5 14 12 85.7% 10 30 24 80.0% 30 90 72 80.0% 40 115 96 83.5%
TOTALS 1990 9% 237 180 75.9% 17% 462 339.5 73.5% 34% 893 676.5 75.8% 57% 1380 1142 82.8% 78% 1860 1561 83.9%
BAC 1990
`
Calculations used:
At task level: EV = %C * Budget (for the task)

Efficiency = CPI * 100% = (EV/AC) *100%
At project level: EV total = sum of EV for the week

% Complete = EV Total/BAC
Efficiency = CPI * 100% (for the week) = (EV total/AC total) * 100%
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In all control mechanisms the important factor is to look for trends, and when
using Earned Value data such as this it is the trend that is important.
If one assumes that the optimum performance is 100% +/- 20% then the
following is clear from the data:
Task A has gone very well with a month on month increase in
performance. It would be worth investigating the cause of the
increased efficiency as perhaps it could be applied elsewhere in the
project.
Task B has completed within the parameters set.
Task C has problems the staff on the task have consistently under-
performed and a trend such as this should be ringing alarm bells. In
the first instance the project manager should have got to grips with the
situation at week 4 and certainly by week 8. There must be a reason
perhaps there are unapproved changes taking place, perhaps there
is a claim to be made for delays elsewhere. In any event action is
required now.
Task D is performing satisfactorily.
Task E is performing satisfactorily.
Task F is performing within limits, but at the lower end. Some
investigation could be undertaken to look at improving the efficiency.
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Section 3.6 Q2
Consider a project with a budget of 1m (BAC). It has a planned duration of
Cost Type Amount
Planned 600k
Costs
Actual Costs 500k
Earned 460k
Value
Calculate CPI, CV, SPI, SV, Final Coat, Final Planned Duration and %
Formulae
CPI = EV/AC
SPI = EV/PC
CV = EV AC
SV = EV PC
Final Cost = BAC/CPI
Final Planned Duration = Planned Duration/SPI
% complete = (EV/BAC) *100
CPI 0.92
SPI 0.77
CV -40
SV -140
Final Cost 1,087k
Final Planned Duration 23 months
% complete 46%
A CPI value less than 1, or a negative CV indicates that the project will be
over budget. This is supported by the Final Cost calculation indicating a
budget overrun of just under 9%.
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A SPI value less than 1, or a negative SV, indicates that the project will be
late. This is supported by the Final Planned Duration figure of 23 months.
The project is less than half finished (%complete = 46%) and is going to be
late by 5 months in a 18 month project.
This is perhaps more worrying than the cost overrun as this is less than a
potentially acceptable 10% overall.
I would investigate the reasons for the delay and see if it can be corrected.
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Section 3.6 Q3
Consider a project with a budget of 1.6m (BAC). It has a planned duration of
Cost Type Amount
Planned Costs 700k
Actual Costs 800k
Earned Value 850k
Calculate CPI, CV, SPI, SV, Final Coat, Final Planned Duration and %
Formulae
CPI = EV/AC
SPI = EV/PC
CV = EV AC
SV = EV PC
Final Cost = BAC/CPI
Final Planned Duration = Planned Duration/SPI
% complete = (EV/BAC) *100
CPI 1.06
SPI 1.21
CV 50
SV 150
Final Cost 1,506k
Final Planned Duration 20 months
% complete 53%
A CPI value greater than 1, or a positive CV indicates that the project will be
under budget. The Final Cost calculation indicating a budget underspends of
about 10% supports this.
A SPI value greater than 1, or a positive SV indicates that the project will be
completed ahead of schedule. This is supported by the Final Planned
Duration figure of 20 months.
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The project is more than half finished (%complete = 53%) and is going to be
early by 4 months in a 24 month project.
I would investigate the cause for the excellent performance and ensure that it
was maintained. Perhaps there may be a cause for a celebration?
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Section 3.6 Q4
Explain five benefits of using Earned Value Management.
Five benefits are:
1. Helps to see how well we are doing
2. Helps to see how well we could do by changing the plan
3. Identified areas of under/over achievement
4. Provides a basis for standard curves to provide targets for future
projects
5. Can be used as a basis for staged payments
Helps to see how well we are doing
By comparing EV (%complete x budget) with the Actual Cost (AC) and the
Planned Costs (PC) we can derives the Cost Performance Index (which is a
measure of efficiency) and the Schedule Performance Index. (CPI=EV/AC,
SPI=EV/PC) If the indices are less than one this indicates that we will be over
budget/late, over 1 then we will be under budget/early. The Final Project
Costs can be estimated by Budget/CPI and the Final Duration by Planned
Duration/SPI. This enables the project manager to take corrective action at
an early stage to bring the project back on track. For example if late and
under budget, money could be spent to accelerate the works. If late and over
budget, perhaps the scope could be reduced? These figures are included in
performance reports to the Sponsor and Steering Group.
Helps to see how well we could do by changing the plan
Cost Variance and Schedule variance can also be calculated (CV=EV-AC,
SV=EV-PC) and these can be used as KPIs and trends recorded and acted
upon. Negative figures indicate a trend towards over budget and late whilst
positive values indicate a trend towards under budget and early. By setting
parameters above and below zero Green, Amber and Red bands can be
identified. Whist the variance is within green no action is required, amber
indicates questions to be asked and red requires immediate action.
When calculating final costs and duration the assumption is made that current
trends will continue. However, EVM can be used to work out what needs to
change in order to improve matters. This may involve re-estimating future
work, or changing the order or dependencies. What if analysis can be
undertaken to assist with these projections.
Identifies areas of under/over achievement
Typically EV will be calculated for each task within the plan, or subset thereof.
CPI and efficiency is calculated and then compared against 100%. For
example f three tasks were being undertaken (A,B,C) and the efficiency was
80%, 90% and 65% respectively, the Project Manager make take the view
that anything between 80 and 120% was acceptable. Thus no action is
required for tasks A and B. However, task C seems to have a serious
problems and an investigation will be required. Perhaps additional work has
been incorporated into the plan, and a change request should be issued.
Perhaps another supplier has caused a delay and therefore a claim can be
raised. Alternatively, there may have been problems and now these are
resolved the task can be re-estimated to give a more realistic view of out turn
costs and durations.
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Provides a basis for standard curves to provide targets for future

projects
If a process is undertaken regularly then empirical data can be gathered from
the work to produce a standard plan curve. For example, a company making
helicopters will be able, after the staff have become familiar with the process,
to define the activity required for each stage of the build such as basic
airframe, building the fuselage, adding undercarriage, engines rotors etc.
These standard curves can then be supplied to other manufacturers, or other
plants within the company as targets for them to achieve. As an example
Boeing supplied standard curves for the Apache build to Westland
Helicopters. This saved extensive effort by Westland in defining the build
plan and resource requirements. If also provides targets for staff
achievements which can be incorporated into performance bonuses.
Can be used as a basis for staged payments
A common method of payment is to pay via achievement of milestones. This
does tempt some companies to chase the milestone2 to the detriment of the
other activities not associated with the milestone. As an alternative payment
can be made via earned value, in other words payment is made for useful
work done. Current recommendations advocate payment f no more than 80%
of contract value in this manner, with the remainder being made via standard
milestone payment scheme.
This method is widely used in the US defence industry and is being
introduced in the UK (2008/09).
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Section 3.6 Q5
Using the data below:
a) Calculate EV for months 1 - 5, draw the graph showing Budget Curve
and PC for months 1 to 10 and AC and EV for months 1 to 5.
b) Calculate the Final Cost and Final Duration for this project based on the
figures at Month 5.
Month 0 1 2 3 4 5 6 7 8 9 10
PC 0 5 15 30 50 80 120 140 155 165 170 (000s)
AC 0 6 20 35 55 95 (000s)
%C 0 2 7 15 25 40
Month 0 1 2 3 4 5 6 7 8 9 10
PC 0 5 15 30 50 80 120 140 155 165 170
AC 0 6 20 35 55 95
EV 0 3.4 11.9 25.5 42.5 68
Budget 170 170 170 170 170 170 170 170 170 170 170
%C 0 2 7 15 25 40
At Month 5 CPI = EV/AC = 68/95 = 0.72
At Month 5 SPI = EV/PC = 68/80 = 0.85
Final Cost = Budget/CPI = 170/0.72 = 236
Final Duration = Duration/SPI = 10/0.85 = 11.8
180
180 160
160 140
120
140
(x 1000)
PC
100 AC
120
80 EV
(x 1000)
Budget
100 60 PC
AC
80 40
EV
20
60 Budget
0
40 1 2 3 4 5 6 7 8 9 10
Months
20
0
1 2 3 4 5 6 7 8 9 10
Months
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Information Management and Reporting - BoK Topic 3.7

Section 3.7 Q1
a) State six types of information that a task owner will report on throughout
the project
b) Explain two ways in which the project manager will use the information
stated above.
a)
1 Performance status - the task owner should report the actual or forecast
date of achievement for the deliverables.
2 Schedule status - the task owner may be required to report the estimated
time of completion for each task.
3 Cost Status - the task owner should report the actual expenditure and the
committed expenditure to date for each task.
4 Status of quality progress - the task owner should report any changes that
might affect the form or function of the task deliverables.
5 Risk exposure system - the task owner should report any changes in the
status of any identified threats to the achievement of tasks, together with any
new threats or opportunities.
6 Exception thresholds and variance reporting - defined triggers will require
the task owner to report variations to forecast time and cost at completion and
suggest recovery actions.
b) Use 1: The information will be reviewed and the schedule updated. The
variances to the schedule for time and cost will be noted and if necessary
corrective action will be taken to bring the tasks back onto the appropriate
time and cost schedule.
The information could trigger an issue that will require escalating to the
sponsor and/or steering group.
It could also be used a basis for performance reviews with the teams
concerned, particularly with a view to continued improvement, for example,
when reviewing the quality statistics.
Information from teams could also be used to support valuations of work
performed and related payments. This may be linked to an earned value
management system.
b) Use 2: The project manager will use the information as a basis for reporting
to the sponsor and steering group and other stakeholders as indicated by the
communications plan. S/he will consolidate the information received from the
task owners into a consolidated report. Information from the task owners and
teams is received frequently, often weekly, whilst the consolidated report is
required at a longer frequency, often monthly.
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Section 3.7 Q2
List and describe five reasons for archiving project documentation.
1 Provides a repository for historic records
2 Enables future audits of a projects performance
3 Helps to estimate future projects
4 Stores lessons from the project that can be applied to other projects
5 Provides a mechanism for sharing data to others.
1. Archiving project documentation is vital as it provides a repository for
historic records. This may be important for legal reasons including
perhaps the provisions of the Data Protection Act. These records can be
used to provide data for a number of company initiatives such as
marketing and promotional literature where project information can be
used to positive effect.
2. The records provide an audit trail of the project and will facilitate a future
of audit of the projects performance. It is often required that these
records are kept for 7 10 years for this purpose. Whilst necessary in all
cases it is particularly important when projects have not gone as well as
expected and a major review is required. An example would be the
enquiry into the Scottish Parliament Project.
3. Project records will (should) record original and final estimates for each of
the tasks. This provides vital information for an organisation and enables
it to improve its forecasting and estimating capability. This should help
companies to refine their estimates such that future works can be more
accurately forecast, particularly at the initial tender stages.
4. The records will record that which went well, that which went badly and
that which would be differently in future. Often noted in a lessons learned
report this information is important for both project managers and the
organisation if his/her/its ability to implement projects is to improve. This
information should be made available for all parties to review and share
throughout the organisation.
5. As the information is to be shared with many people every effort should be
made to capture experience in a form that they can use. Often this is
achieved through the use of a company intranet and in some cases it is
open to a wider audience through the Internet. Information is only of use
if it can be accessed; therefore it needs to be stored in a usable format.
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Issue Management - BoK Topic 3.8

Section 3.8 Q1
a) State a definition of an issue.
b) Explain four steps of an issue management.
Answer:
a) Definition: An Issue is something that threatens the project objectives and
cannot be resolved by the project manager. An example could be a risk
that has happened and the result requires senior management
intervention.
b) Step 1. There must be a log within which the project manager can record
all project issues that are raised. (It is also possible that there may be a
corresponding issue form). The log would contain information such as:
Issue number, Author, date raised, description, analysis, date escalated,
action taken, status, owner, and date cleared.
Once the issue has been logged and given a number the author should be
advised and given the number so that s/he can enquire about the
progress of the issue.
Step 2. Analysis, the issue must be reviewed to establish the cause and
exact details of the problem, its effect on the time, cost, quality, scope,
risks and benefit objectives. This information can be used to establish the
best possible course of action so that a recommendation can be made to
the sponsor/steering group. An owner of the issue should also be
established. This would be the person who is responsible for its
resolution.
Step 3. Escalate the issue to the sponsor and steering group for action.
This senior management body is then responsible for agreeing, or
otherwise, the project managers recommendation and ensuring that the
owner is aware of the situation and has agreed to take action o resolve
the issue. The project manager is informed of the decision and the issue
log updated.
Step 4. Once escalated the project manager should monitor all issues to
ensure that the agreed actions are happening and having the desired
effect. Information on the issue status should be included within the
reports given to both senior management and the team. In the event of
an issue not being resolved further escalation to the sponsor will be
required. If issues continue to be raised and older ones are left unresolved
then the project is out of control.
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Requirements Management - BoK Topic 4.1

Section 4.1 Q1
a) State three elements of a requirements management process.
b) State why requirements management is important.
c) Explain how requirements management is applied across the project life
cycle.
Answer
a)
1. Capture, where they are discovered, structured and documented
along with any relevant acceptance criteria.
2. Analysis, where they are assessed and prioritised in accordance with
the needs of the business and the projects priorities.
3. Testing, where the views of different stakeholders need to be
considered and the requirements tested against them to ensure that
they are comprehensive and accurate and if met will satisfy the
diverse stakeholder groupings.
b)
Requirements are the basis for the project they describe what the customer
wants and are used as a platform for the solution and the way in which that
solution is provided. If requirements are not adequately determined and
maintained then there will be an excessive amount of changes necessary and
this will inevitably lead to cost and time overruns.
c)
Initially, the user requirements will be generated during the concept phase by
discussing the project with the sponsor and the users in particular. This will
comprise a high level view of the stakeholders wants and will not necessarily
describe what is actually needed. They will form the basis of the business
case. The requirements should be documented and structured such that the
value, priority, timescales and process are clear for each requirement.
Value represents the amount of benefit that will accrue from the requirement
and could be used to assess its priority how important is this requirement
compared to the others.
The timescale associated with the requirement should reflect the timescales
of the business, i.e. when must this requirement be satisfied if the business is
to meet its strategic aims and finally the process describes the means by
which the requirements will be satisfied - i.e. the solution or project approach.
As the project moves into the definition stage and more is known about the
solution the requirements will be revisited and refined to ensure that they are
realistic and that they will be adequately satisfied by the solution. The
statement of requirements will be baselined and placed under configuration
management so that any future changes can be adequately analysed prior to
inclusion in the project.
During implementation the solution will be tested as each part of the solution
is created. The requirements will form a basis for these quality checks and
the results recorded in some form of quality log. It is usual to get the users
involved in these tests as this generates commitment to the products and
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provides an early opportunity for any misunderstanding about the

requirements to be resolved.
Finally in the Handover phase the users will take part in Acceptance Testing.
This is where the final product of the project is tested to see that it meet the
acceptance criteria. The acceptance criteria are based on the requirements.
During operations the solution will be seen to satisfy the requirements.
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Estimating - BoK Topic 4.3

Section 4.3 Q1
Explain bottom-up estimating. Include a diagram to illustrate your answer.
Example 1 Bottom-up estimating
Site
description
(A1)
Cost 1,950
Time 9.5
days
Write site Write site

Go to site Draw site
Survey site visit report description
(A1.1) plan (A1.3)
(A1.2) (A1.4) (A1.5)
Cost 250 Cost 500
Cost 500 Cost 300 Cost 400
Time 0.5 Time 2
Time 1 day Time 3 Time 3
day days
days days
In the example above the site description is completed when the tasks below
it are completed. The cost of the description is a summation of the costs of all
the subsidiary tasks and amounts to 1,950. However, summation of the time
required can give a false answer, as the individual tasks do not necessarily
run sequentially. Indeed, in this example it is likely that tasks A1.4 and A1.5
will happen concurrently and the other will be sequential. This the time
required is actually 6.5 days, not the 9.5 originally calculated.
Example 2 Bottom-up estimating
Assemble
Wheel
(A1)
Cost 50
Plus 100
Build hub Get spokes Get rim Get tyre

(A1.1) (A1.2) (A1.3) (A1.4)
Cost 20 Cost 50 Cost 20 Cost 10
In this example the wheel assembly has work associated with it in its own
right and this cost must also be added into the summation of the costs of the
subsidiary tasks. The timings associated with this breakdown must also be
carefully considered if erroneous estimates are to be avoided.
Summary.
It is important to recognise what the figures at the lowest level comprise. Do
they include, for example, any allowance for inaccuracy; is there an allowance
been made for risk and so on? This information must also be considered if an
accurate estimate is to be achieved.
Remember costs include a number of elements such as manpower and
materials, sub contract, plant etc and these costs must be clearly shown.
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Finally, consider the interface between the lower level and the upper level is
there an activity hidden here, such as some form of assembly? If so
consider adding the tasks or make sure that its associated costs are carried
upwards in the breakdown.
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Configuration Management - BoK Topic 4.7

Section 4.7 Q1
Explain five elements of a configuration management process.
There are basically five stages involved in any configuration management
process:
1. Planning: Firstly, it is necessary to decide how the end product is
going to be released and how updates to the individual components
will be managed. Different levels of management will be required at
different levels of the supply chain. For example the manufacturers of
a radio may maintain records of the components parts aerial, case,
speaker, electronics board, component board. This represents the
level at which the components are procured. The supplier of the
electronics board will maintain a record of the individual components,
and the supplier of the components will maintain a record of their
individual parts. This can be summarised as the lowest level at which
an individual component can be installed, replaced or modified.
2. Identification: Once the level of management has been achieved it is
necessary to identify and specify all components of the final product.
This means that an identification scheme is required. Typically this
will involve project name, product type, product title and version
number. For example, in the radio product the loudspeaker may be
identified as radio\audio\loudspeaker_v2.6.7.
3. Control: Once identified the components are brought under change
control and may not be amended unless the appropriate change
control process has been followed. The configuration librarian (who
looks after the system) will make sure that configuration items are
baselined, copies issued for change and the new version baselined at
the new level. Subsequently the new versions are released and the
old version recalled.
4. Status Accounting: The configuration librarian will be able to supply
and account of the status of each item. This will include information
relating to the version of the product, has it been completed, is it
baselined, has it been issued for a change etc. This will enable a
current and historical record to be provided for each item.
5. Verification: Finally the librarian will undertake reviews and audits to
ensure that there is conformity between the projects products and the
authorised state of configuration items as registered in the
configuration management records.
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Section 4.7 Q2
Describe five elements of the link between change control and configuration
management.
1. Once the individual components of the project have been identified
they are brought under control. This means that nothing moves and
nothing changes unless it passes through the change control process
and the associated link to change control.
2. The configuration librarian will often be responsible for maintaining the
change log, and if not must maintain a close relationship with the
group that do.
3. When products are produced they are baselined and if they need to be
amended then a change request must be raised. Once the request
has been through the change process and been agreed the
configuration librarian will take a copy of the product (NB the master is
never changed) and give it a new version number, ideally indicating
that this is draft product that is being worked upon. Typically this is
undertaken by adding a lower case letter after the version number,
e.g. v1.6a.
4. This product is issued to the appropriate team for updates and when
the product is completed and signed off it will be returned to the
configuration librarian. The librarian baselines the product, taking
away the lower case letter, and archives the old baseline. Copies of
the new product are released and old version recalled and destroyed.
5. If multiple changes to a product are required then they should be sent
as a group of changes with the product to one person to undertake so
that one change does not undo another. Finally the system should
maintain a link between the product and the change request that
caused the change to the product.
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Business Case - BoK Topic 5.1

Section 5.1 Q1
State ten items that will typically be included within the contents of a business
case.
(Note more than the required ten have been shown for example purposes)
1. Background and reasons that describe the business setting of the project
and the reasons describe the problem that is to be solved, or the
opportunity that is to be grasped. The reasons are distinct from the
benefits, which describe the improvement that will be gained when the
project is complete.
2. Goals and objectives that state the key objectives in terms of time, cost
and quality for the project and the ultimate goal that will be achieved when
the project is complete.
3. Options. This section states the solutions that have been considered, the
selected option, and the reasons for its adoption.
4. Key deliverables. The main products of the project are described here.
5. Scope. This describes the main work areas of the project and the outputs
of the project that will form the key deliverables.
6. Exclusions that will state what is not being done. Most important as
otherwise the readership tends to assume these things are included.
7. Benefits and outline realisation plan. This is a key section of the business
case as it is the benefits that justify the expenditure in terms of time and
cost that is proposed. The benefits should be tangible, financially biased,
and they must outweigh the costs and risks if the business case is to be
viable.
8. Stakeholder analysis. This will provide a view of the backers and their
role in the project. It will also identify any negative stakeholders and their
likely reactions to the project.
9. Organisation structure. Based on the stakeholder analysis this will
indicate who is taking the key roles in the project, particularly the sponsor,
steering group and project manager.
10. Assumptions that state what has been assumed about the project during
the preparation of the business case and will needs to be tested.
11. Risks a list of the major threats and opportunities raised during the
preparation of the business case.
12. Issues a list of any issues that require resolution.
13. Dependencies a list of anything upon which the business case is
dependent.
14. Constraints those things that the project must work within, such as time,
cost, safety, technology, legal etc.
15. Investment appraisal. This states the financial aspects of the business
case. This could include discounted cash flow, net present value, internal
rate of return and return on investment figures.
16. Evaluation. This final section provides a summary of the business case
and evaluates the investment appraisal.
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Section 5.1 Q2
Explain the use of Payback, Net Present Value (NPV) and Internal Rate of
Payback states when the original investment will be recouped. It does not
take into the account the cost of money or future cashflows. It is a useful first
step when assessing the viability of a project. It tends to be used in projects
that have a short life cycle such as fashion or seasonal products. It may also
ignore the costs of borrowing. An example would be setting up a shop selling
Christmas goods in September. The initial investment must be paid back well
before Christmas if profits are to be made thereafter and the project is to be
successful.
Net Present Value (NPV) is based on a Discount Cash Flow (DCF). This
technique allows cashflows to be considered in todays terms. The sum of a
DCF is known as the NPV. Basically, having established the cashflow for the
project a Discount Factor is applied to it which effectively converts the figure
into todays monetary value assuming a given interest rate. As an
approximate example if the interest rate was 5% (this would be the Discount
Rate that would be used to calculate the Discount Factor) and next years
cashflow was 105 this would equate to 100 in todays money. This allows
different cashflows to be compared on a like for like basis. The one with the
highest NPV would be the better option.
Internal Rate of Return is defined as the Discount Rate when the NPV is zero.
This requires a project to have both income and cost. It is calculated by
applying different discount rates until the NPV equals zero. This is easily
done by taking a low rate of say 2% calculating the NPV and plotting this on a
graph. The NPV is calculated with a high rate of say 30% and NPV plotted.
The two figures are joined and where it crosses the axis is the IRR (see the
diagram below). Basically, if IRR is greater than the market rates the project
will make a profit, of IRR is less than the market rate the project will make a
loss. Most companies set a value of IRR around say 14%, which is much
higher than the market rate, and expect the IRR of the project to be greater
than this figure.
IRR Graph The IRR in this example is approximately 10%
1000
500
0
NPV ()
5 10 15 20 25
-500
-1000
-1500
Discount Rate
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Procurement - BoK Topic 5.4

Section 5.4 Q1
State eight steps that may form part of a simple procurement process.
The basic steps involved in a simple procurement process are given below. I
have used a new hotel kitchen to explain the process.
1. Establish the user's need. In the first step the users (the chefs) would be
consulted and a list of requirements developed. These requirements may
be in the form of a wish list at this stage and it may not be possible to
achieve them all. This expectation should be clearly set at this stage.
2. Survey the market place. Taking the list to market will enable me to
answer questions such as how much the kitchen is likely to cost; is it
possible to get this type of technology; how long will it take to be
delivered; are there any constraints; what are the likely maintenance
costs.
3. Specify a realistic requirement. Having got some preliminary information I
can now engage the chefs in the debate and a realistic set of
requirements can be generated taking into account the information
discovered in step 2.
4. Seek tenders for supply. The information agreed in step 3 is converted
into a specification that is issued with an invitation to tender (ITT) or
request for proposal (RFP) to a number of suppliers. It is likely that these
suppliers have been pre-qualified by this stage. I will also have prepared
a list of assessment criteria for the tenders, including weighting of
requirements, cost, support terms etc.
5. Assess tenders and choose supplier. When the tenders are received they
will be assessed against the assessment criteria. It is likely that a shortlist
will be established and interviews undertaken to clarify points of detail.
Following this the supplier will be appointed.
6. Accept the goods into service (commissioning). The supplier will build the
kitchen, commission the systems and handover the completed kitchen to
the customer the chefs. After a final inspection the kitchen will be
accepted into service and the final invoices paid.
7. Support the equipment during use (Storage; Maintenance; Repair;
Training; etc.) This part of the process covers the ongoing maintenance
and support of the kitchen. This may include regular servicing of
appliances, repair activities and upgrades during its useful life.
8. Decommission and dispose of redundant equipment. In this final stage the
kitchen will be come to end of its useful life and will be replaced.
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Section 5.4 Q2
Explain five payment options and for each option give an example of
where it may be used.
Fixed Price. This is also known as lump sum. It means that the
customer has agreed to pay the contractor a fixed price for the work.
The monies will be paid on completion of the work or a stage of it.
Variations to the contract may be made through the agreed change or
variation process. A fixed price contract may include a variable
element to allow for part of the work that may vary due to things such
as taxes, inflation, raw material prices and so forth. If these elements
are not included it is known as a firm price and no variable elements
are built in. Firm price contacts can still be amended via the agreed
variation or change process.
Fixed price is often used when the scope of works can be clearly
defined and the risks are limited e.g. house building.
Unit Rate Based. Payments are made based on pieces or units of
work done. This may be a number of power sockets installed,
drawings completed, lengths of pipework etc. It allows greater
flexibility than fixed price and is often used when the exact quantities
of work is unknown. It allows for a detailed comparison of bids and
provides a basis for pricing variations. However, preparing the
schedule of rates compiling the list of items required under the
contract takes time and the customer incurs this cost before the bid is
issued.
Unit Rate Based contracts could be used when considering a major
data cabling installation in a new building where the customer has yet
to decide their exact requirements.
Activity schedules/milestones/planned payments. In this form of
payment structure the payments are broken down against a series of
activities that must be completed for the payment to be made, often
related to key milestones in the project. It provides the client with a
view of the likely cashflow across the project and allows comparison of
cashflows at the bid stage. The supplier has an incentive to meet the
schedule and achieve the milestones. A disadvantage is that the
contractor often chases the milestone which can be detrimental to
the overall programme.
This type of payment method is often used on major build projects
such as aircraft or helicopter projects.
Target cost. In this form of payment the customer and contactor agree
a target cost for the project. This gives an incentive to the contractor
to perform well as any savings on the target cost are usually shared
between the customer and the contractor. These arrangements also
apply to overruns with the customer paying a proportion of the cost
overrun.
It does require clear agreements to be made about what is and isnt
included and consideration should be given to variations to contract.
This form of payment could be used on a large contract such as a
road scheme and would be used to give the contractor an incentive to
finish ahead of schedule.
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Cost-reimbursement. In this form of contract the supplier is paid for

work done and materials consumed plus an element of profit. The
customer has great flexibility to vary the work required but bears
greater risk for cost escalation. Suppliers can bid for this work stating
their rates.
It is useful for emergency work or small contracts where the total
liability is limited.
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Project Life Cycles - BoK Topic 6.1

Section 6.1 Q1
Explain five benefits of splitting a project into phases.
Five benefits are:
Facilitates rolling wave planning
Helps with risk management
Helps to plan payment structure
Helps with resource management
Provides go/no go decision points.
Facilitates rolling wave planning. Splitting the project will assist with the
overall planning of the project. It is very difficult to accurately plan timescales
in excess of say, 3 6 months. By splitting the project into smaller chunks
the entire project can be planned at high level and the detail required for the
day-to-day management can be planned in detail for 3 6 months. This gives
greater control over the monitoring and control of the project.
Helps with risk management. The risks inherent in any project can be
managed better if the project is split into phases. For example a high risk
project would have more phases; at the end of each a decision is made on
whether to continue or not. More frequent decision points allow for gathering
information on risks and making sure they are under control before
authorising spend on the next phase. This limits the exposure of the project
to risk.
Helps to plan payment structure. Phases enable the payment profile to be
managed as it becomes easier to set the appropriate milestones or decision
points related to payments. This is associated with the point made above
about planning. Smaller stages planed in greater detail make it easier to plan
payments and ensure they are geared to actual progress and delivery of key
milestones.
Helps with resource management. Stages or phases assist the PM to
predict the resource requirements, improving utilisation of resource and its
availability. If the plan is made on a rolling basis of say 100 days the plan can
be rolled forward every few weeks and the on going need for resources
predicted. This will enable costs to be kept to a minimum.
Provides go/no go decision points. A final and most important benefit of
splitting a project into phases or stages is that it allows assessment of each
stage to take place, before any further work takes place. The business case,
risks and overall progress of the project can be assessed by the sponsor and
steering group before funds and resources are committed to the next stage or
phase. Again this helps to reduce the risk of spending money on a project
that has ceased to have any benefits.
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Section 6.1 Q2
a) List and describe four phases of the project life cycle.
b) State two benefits of splitting a project into phases.
NB this answer describes the APM BoK project life-cycle it is acceptable for
you to describe the life-cycle used by your organisation. I recommend that
you start your answer with a statement such as I work for .. and our life
cycle covers these phases. Then go on to describe the purpose of each
phase and its typical outputs.
a) Four phases of the project life cycle in the APM BoK are:
Concept
Definition
Implementation
Handover and Closeout
Concept is the first phase of the project life-cycle and it is here that the need,
problem or opportunity is confirmed and investigated. The feasibility of the
project is assessed and if found to be acceptable the project proceeds into
Definition. The main output of the concept phase is the Business Case. The
business case will continue to be developed during definition.
Definition is the second phase of the project life cycle. During this phase he
preferred solution is further evaluated and optimised. Often an iterative
process, definition can affect requirements and the projects scope, time, cost
and quality objectives. As part of this phase the project management plan
(PMP) is produced and the resources required during the implementation
phase will be identified.
Implementation is the third phase of the project life cycle, during which the
project management plan (PMP) is executed, monitored and controlled. In this
phase the design is finalised and used to build the deliverables. This phase
may be split into smaller technical phases such as specification, design, build
etc. During implementation the project manager will allocate work to the
teams, monitor progress and take controlling action where required. Change
control will be vital during this phase.
Handover and closeout is the fourth and final phase in the project life cycle.
During this phase final project deliverables are handed over to the sponsor
and users. Closeout is the process of finalising all project matters, carrying
out final project reviews, archiving project information and redeploying the
project team.
Once the project is completed the project manager must make sure all project
personnel are deployed in an appropriate manner; the projects accounts
need to be finalised; contracts and purchase orders are finalised; a post
project review is completed and all records are archived for audit purposes in
the future. It may also be appropriate to complete performance appraisals of
the project personnel.
b) Phases facilitate rolling wave planning. The entire project is planned at
high level and the next stage is planned in detail. The peak of planning detail
rolls forward as the project progresses.
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Phases make it easier to identify and manage risk; the phases are short and
the work well defined so it is much easier to identify the risk and implement
appropriate mitigating actions.
Other statements that could be made here include:
Go/no go decision points
Estimating
Early phase success reinforce stakeholder commitment
Funding in chunks
Lessons learned applied to future phases.
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Handover and Closeout - BoK Topic 6.5

Section 6.5 Q1
Explain five elements of a project handover process.
Handover process
Inform stakeholders
of stage entry Release
Brief project team Complete project

work scope Post
Project
Review
Finalise release Release Handover &
preparations decision close project END
PROJECT CLOSED
Prepare for
project closure
Step 1. As the end of the project approaches the project manager (PM) will
inform the stakeholders that the handover/closure is about to take place. This
will ensure that all involved parties are prepared. This will include a briefing
for the project team to ensure that all tasks required during the final stage
have been planned, risks identified and mitigated, and any problems identified
and solved.
Step 2. The project will complete the work ready for the release of the final
product. This will involve final testing/inspection, completion of handover
documentation, as fitted documentation, records etc. The PM will also
prepare for closing the project archiving files, preparing the necessary
documentation.
Step 3. The decision to release the products of the project is made and the
products released to the customer and the operational environments. The
customer and operational representatives will complete a final acceptance
test, which may result in some form of snagging list that the project team will
complete.
Step 4. Final handover and acceptance will happen after the snagging is
completed and the project is formally closed. Contracts will be finalised, staff
returned to their operational areas and cost centres closed. All relevant
documentation will be archived and a post project review will be completed to
evaluate how well the project was managed.
Step 5. Post project there must be a benefits review to establish whether the
project did realise any benefits. Arrangements for the review must be made
before the project is completed so that there is a focus for benefits within the
operational environment.
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Section 6.5 Q2
Explain five benefits of formally closing a project.
Clear handover. Formal closure will ensure that the products of the project are
formally handed to the customer and that the customer accepts the outputs.
Similarly, the products must be handed to, and accepted by, the operational
and maintenance area that will look after the products in service. This avoids
the tendency to drift into operational life with no clear demarcation between
the project and the business. Handover at this point may be qualified in that
there may be some remedial work to complete.
Provides an opportunity to take stock of achievement. It is important that then
members of the have some time to take stock of what has, and has not, been
achieved. This forms part of the post project review and it is important to
cover the operational aspects of the project in terms of the way it was
managed and also to collect and distribute the lessons learned focussing on
what went well, what went badly and what would be done differently. It is
important that this information is not lost.
Prevents loss of focus. Often one of the main difficulties at the end of a
project is that both the client and the contractor/supplier lose interest. This
is due to a variety of emotional responses. Often supplier staff are becoming
concerned over their future what happens when the project finishes, what
shall I do? On the client side, the focus has been lost and they are working
towards the next initiative, before the current one is completed. By
maintaining a focus on the end of the project, the need for a formal handover
ensures that the PM motivates all concerned to make that extra effort and
make sure all is completed and managed appropriately.
Financial control. At the end of a project there will be a number of financial
aspects to be completed. These include payment of final contactor invoices,
payment of expenses, finalising the projects accounts and closing the cost
centres down. The latter is most important and the PM must make sure that
all claims are received before the cost centre is closed if not then getting the
funds can be difficult. It is also important to make sure that project staff do
not continue to book time and expense to the project when it has been
completed. This can occur if the project is not formally closed.
Focus for benefits realisation. Finally a formal closure ensures that there is
commitment from the business to the benefits realisation process. Benefits
realisation is often difficult to achieve, as many people seem to find
something better to do. Formal closure should include a process to ensure
that a realisation plan is in pace, signed off by the sponsor and that such a
plan has the commitment of the business. This could include including these
objectives in personal development plans, performance or bonus related
criteria.
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Project Reviews - BoK Topic 6.6

Section 6.6 Q1
Explain five types of project reviews.
Project Evaluation Review
These reviews are additional to the normal monitoring and control points
within a project. They are often undertaken by some form of assurance
function and their purpose is to discover whether, or not, the project is being
managed correctly. They should be included in the project schedule by the
project manager and they will use the project management plan as their base
document.
Gate Reviews
Typically undertaken at the end of a phase a gate review is a point where the
senior management in an organisation assure them selves that the project is
worthwhile. It will concentrate on the viability of the project based on the work
to date, the outcome of the project evaluation reviews and any other relevant
organisational standards.
Audits
Normally undertaken by an independent body, internal or external to the
organisation an audit is similar to a project evaluation review. Its objective is
to provide (senior) management with assurance that the project is being
managed correctly. Audits can be undertaken by a project support office
should one exist.
Post Project Reviews
These are an operation review of how well the project was managed. It
should be concluded prior to formal closure of the project. It can be
considered as the final project evaluation review, except that is has an
historical perspective.
It should focus on how the project performed in terms of cost, schedule
adherence and delivery of specification. Its report should be widely
distributed; recipients may include:
Project Sponsor
Project Manager
Project Team
Key Stakeholders.
The essential outcome is to make lessons learnt available to all.
Benefits Review
Between three to six months after the project has been closed a formal review
should be undertaken to determine whether the project has met its stated
objectives or is on course to meet them. It is important that the review is
considered from the differing viewpoints of the various stakeholders involved.
The benefits review will probably be initiated by the project sponsor and
should result in action plans for improvement where necessary and help in the
achievement of the benefits if they have not been realised already.
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Organisation - BoK Topic 6.7

Section 6.7 Q1
Explain five strengths or weaknesses of managing a project in a matrix type of
organisational structure.
1. Many organisations use this form of organisational structure to
manage their projects as business as usual and project work can
coexist and be undertaken by the same workforce. Projects can draw
on the entire resources of the parent organisation. Resources can be
shared by a number of projects. In theory, a matrix organisation
attempts to support effective project management by formalising the
informal links between projects and the parent organisations specialist
functions. This facilitates communication at the operational level.
2. As all projects within the organisation are managed using the matrix
there is a common understanding of the need to share staff between
the project and the business. Personnel within the business (or
function) are able to enhance their technical expertise whilst getting
experience of working on a range of projects. This provides greater
variance in job role, gives individuals a wider career path and is often
seen as motivational.
3. As each project has different objectives and technical needs the
organisation can be tailored to meet the needs of the project, whilst
maintaining a single point of responsibility for the project, facilitating a
rapid response to client needs. However, this can lead to difficulties as
the individual team members may have divided loyalties between the
function and the project.
4. Dual reporting an also be a problem especially in weak matrices.
Members of the team have to report to the project manager on project
matters and often have to report the same thing to their functional
manager. This, of course, increases the individuals workload and can
be de-motivational.
5. Sharing resources can lead to conflict between the function that needs
to resources to undertaken business and usual and the project that
needs the resources at specific times in order to meet time
constraints. Additionally, projects may also compete for the same
resource and functional departments may be reluctant to surrender
their best personnel to projects.
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Section 6.7 Q2
Explain five strengths or weaknesses of managing a project in a functional
1. Functional organisations is the traditional form of organisation in many
large organisations and public sector bodies, although there is a
tendency now for these companies to be move to a matrix style. It
provides a hierarchical form of management where the functional
managers may have project and line management responsibilities.
This enables, theoretically, a high level of staff flexibility to be
achieved. However this is often limited by the bureaucratic nature of
many such organisations.
2. With staff permanently based within the functional department, it is
often easier to provide personnel with greater access to training,
career progression thereby improving the technical expertise within
the function. This provides a well established within profession
career path.
3. There are several disadvantages of functional organisations. Within a
functional department the customer is less likely to be the primary
focus of attention. The day-to-day operations of the function often
take priority over the function and the focus of the project can be lost.
The client may fall between departments and each function can claim
that they are not responsible for the aspect of the project that the
customer is enquiring about.
4. Responsibilities may be difficult to define when projects are
undertaken across departments. Departmental priorities may conflict
with project priorities and consequently there is significant scope for
co-ordination failures.
5. Finally, communication within the project is often difficult due to lack of
a single point of contact, no defined communication routes between
functions and the development of invisible barriers between functions
and between the individuals concerned.
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Section 6.7 Q3
Explain five strengths or weaknesses of managing a project in a project type
of organisational structure. .
1. A project organisation has a number of teams, the members of each
team are dedicated to a particular project. Where this type of
organisation is used the team will move onto the next project when the
current one is finished, rather than back to the functional areas as
might be the case with a strong matrix. In this organisational structure
the project managers normally agree targets and refine individual
responsibilities with the co-operation of their team. They also have
overall project and line management responsibilities for their project(s)
with each team having a distinct project identity.
2. This type of structure has many advantages, for example team
members report directly to their project manager, and there is no dual
reporting as is the case with matrix organisations. This saves time for
the individual and enables a better rapport to be built with the project
manager and allows for a stronger team identity and ensuing team
motivation. The whole team is customer focused and aware of their
responsibilities and their individual contribution to the successful
outcome of the project.
3. This leads to teams being self-directed and as they mature they are
usually highly motivated and very task orientated. Reponses to
customer requests and enquiries can be made quickly and efficiently
because communication channels and processes are well established
and less bureaucratic in nature. Information can be shared easily
between team members.
4. On the down side the insularity of project organisations can lead to
duplication of effort when many projects are running concurrently and
there may be a propensity to stockpile equipment and specialist staff.
There may also be a tendency to become remote from the overall
business activities of the company within which the project is
happening.
5. On an individual basis staff within project organisations do not have
the same opportunities as their colleagues in the matrix (and function)
to develop new skills and develop heir career they are often pigeon-
holed as specialists. This can also lead to problems the project ends,
as continuity of employment cannot be guaranteed in this type of
organisation. It can also be difficult to integrate temporary staff
assigned to the project for a short period.
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Organisational Roles - BoK Topic 6.8

Section 6.8 Q1
Explain the main responsibilities of five key project management team roles.
Project Sponsor. The sponsor owns the projects business case and is the
primary risk taker. Representing the business the sponsor is primarily
concerned with value for money. Throughout the project the sponsor is the
key decision maker and will hold the budget for the project. The sponsor will
chair the steering group. Ultimate accountability for the success or failure of
the project will lie with the sponsor. Other responsibilities include:
Decisions on change matters
Issue resolution
Ensure agreed risk management activities are implemented.
Steering Group. This group is made up of key stakeholders and chaired by
the project sponsor. Its role is to provide guidance on all aspects of the
project particularly with regard to strategic direction, risk management
decisions and issue management.
Project Manager. The PM is responsible for the day-to-day management of
the project on behalf of the sponsor and the steering group. The PM will
ensure that:
The project management plan is produced.
The project schedule is accurate and reflects accurate and realistic
estimates.
The statements of work are written and issued.
The work is monitored and controlled in an appropriate manner.
Management reports are issued in a timely manner and accurately
reflect the situation.
Project Support Office. The project office or PSO will provide administrative
support to the PM throughout the project. This will include preparing minutes
of meetings, logging issues and risks, receiving progress reports from the
teams and updating the schedule accordingly, bringing matters of concern to
the attention of the PM. The project office or PSO will often be subject matter
experts on matters such as risk and planning software.
Team Manager. The team managers will run the teams of people who are
undertaking the work itself. Their responsibilities include scheduling the
teams work, making sure the work is to the required standard, motivating the
teams, liaising with the PM, receiving work instructions (statements of work),
managing team level risks, reporting progress to the PM and taking corrective
action at team level if required.
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Methods and Procedures - BoK Topic 6.9

Section 6.9 Q1
method.
Five topics that should be documented are:
1. Procedures for key aspects of project management
2. Processes to explain how the procedures are used.
3. Definition of key roles and responsibilities
4. Documentation templates
5. Specific techniques
Procedures for key aspects of project management
The procedures should cover key elements of a project such as

organisational structure
business case management
risk management
quality management
change and configuration management
planning
monitoring and control
Each procedure should explain how the topic is applied within the
organisation and any variations that should be considered for different
size of projects or its interface with the organisations programmes.
Processes to explain how the procedures are used
Processes should be written to explain how the project is approached in
each phase from Concept through to Handover and closeout (and
possibly include topics such as benefits realisation in the operational
phase. Typically this will explain how the business case is developed and
used across the life-cycle. Other topics covered could include the process
for reviews and audits. Decision making and planning processes could
also be documented.
Definition of key roles and responsibilities
This part of the method should include a definition of the key [project
management roles used such as the Project Sponsor, Project Manager,
Steering Group, project Support arrangements and Specialist workstream
leaders or Team managers.
Each role definition should be supported with a list of key responsibilities
for each role. This will ensure everyone involved in the project know
where they fit, what is expected of them and should help to prevent
misunderstandings.
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Documentation Templates
Every project will produce documentation such as a Project Management
Plan containing all the various strategies for risk, quality, communications,
work breakdown structures, cashflow forecasts etc. Other items such as
the Business case will be required and there will always be a
requirements for progress reports between the various team levels.
Each one of these key documents should be explained and document
templates made available to provide a consistency of approach across all
projects in the portfolio. It may also be useful to ex[plain how these
documents could be tailored to suit, for example, small projects that do
not require the formality that may be applied to larger, or higher risk
projects.
Specific techniques
A section detailing specific techniques that can be applied and used will
be very useful to all team members. It will enable all team members to
ensure that their knowledge levels are appropriate for the project
concerned and seek further training and guidance if required. This could
cover such items as:
Stakeholder analysis
Earned value management]
Motivation
Leadership
Team building
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Section 6.9 Q2
Explain five advantages or disadvantages of using a structured method.
Advantages.
1. A structured method brings rigour and discipline to the management of
projects within an organisation and provides a common language for
project management terms. If the method is adopted across the
organisation then all members of the organisation will understand the
responsibilities associated with their role in the project
2. The method will establish common documentation formats and all parties
will know where to find the relevant information, e.g. some organisations
have a Project Definition Document that clearly describes the project and
its objectives and includes many elements normally included within the
project management plan.
Disadvantages.
3. In some organisations the method can be implemented with too much
rigour and instead of being a means to and end the method becomes a
means in itself. This is particularly apparent on smaller projects were the
need for rigour and discipline is much less when compared to a larger
project but the same methods and processes are applied which makes
the project process heavy.
4. Staff are not adequately trained in the method and its use. For a method
to be effective requires all staff to understand how it must be applied.
This is often not the case, particularly at senior management level. This
can lead to people being unsure of their responsibilities, confusion arises
and failure ensues.
5. Training in the method does not necessarily mean that people understand
the techniques of project management such as scheduling, resourcing,
risk management for example. As these basic points are missed projects
continue to fail, the method is blamed and ceases to be used.
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Governance of a Project - BoK Topic 6.10

Section 6.10 Q1
(a) State six principles of the governance of project management that would
help avoid common causes of project failure.
NB all eleven principles have been stated for completeness the question
only asked for six and this requirement should be observed in the examination
There are eleven principles of governance that are applicable to projects:
The board has overall responsibility for governance of project
management.
The roles, responsibilities and performance criteria for the governance of
project management are clearly defined.
Disciplined governance arrangements, supported by appropriate methods
and controls, are applied throughout the project life cycle.
A coherent and supportive relationship is demonstrated between the
overall business strategy and the project portfolio.
All projects have an approved plan containing authorisation points at
which the business case is reviewed and approved. Decisions made at
authorisation points are recorded and communicated.
Members of delegated authorisation bodies have sufficient representation,
competence, authority and resources to enable them to make appropriate
decisions.
The project business case is supported by relevant and realistic
information that provides a reliable basis for making authorisation
decisions.
The board or its delegated agents decide when independent scrutiny of
projects and project management systems is required, and implement
such scrutiny accordingly.
There are clearly defined criteria for reporting project status and for the
escalation of risks and issues to the levels required by the organisation.
The organisation fosters a culture of improvement and of frank internal
disclosure of project information.
Project stakeholders are engaged at a level that is commensurate with
their importance to the organisation and in a manner that fosters trust.
(b) For each of two distinct principles stated in part (a), explain the possible
effects of NOT practising them.
Principle: The project business case is supported by relevant and realistic
information that provides a reliable basis for making authorisation decisions.
The business case is the driver of a project as it provides the business
justification for the project and states why the forecast time and effort is worth
the expenditure. It must contain tangible business benefits that can be
accurately measured and realised post project. If this is not done then the
money spent on the project will be wasted as the reason and benefits for the
project are lost in the folklore of the organisation.
The business case is also used to continually align the project with the
business and provides a focus for the ongoing justification of the project and
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will be used at key decision points to decide whether the project should
continue. If this is not done the project becomes a mastermind project
Ive started so Ill finish! Again the effort and costs are wasted.
Principle: There are clearly defined criteria for reporting project status and for
the escalation of risks and issues to the levels required by the organisation.
For any project to succeed it is essential that the risks faced by the project are
identified, analysed and appropriate actions taken to mitigate the threats or
maximize the opportunities. This often requires escalation to the sponsor
and/or steering group. If the escalation process is not defined these decisions
will not be made, opportunities will be missed and risks will occur increasing
the project costs and timescales and ultimately lead to project failure.
Similarly, issues require immediate action. If they are not resolved they will
become showstoppers and the project will fail. Clear lines of escalation are
required and all parties need to be clear about, and accept, their
responsibilities.
Finally, if clear reporting lines are not in place senior project staff, the sponsor
and steering group will not have the right level of information to make
decisions and this leads to extensive delays.
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Communication - BoK Topic 7.1

Section 7.1 Q1
State ten factors that a project manager should consider to ensure that project
communication is effective.
1. Clearly define the requirements of all stakeholders to make sure that
all stakeholders are known, their position understood, and their needs
noted in the communications plan.
2. Agree the communications plan with the stakeholders to ensure that
the needs have been correctly understood and recorded in other
words get the foundations right before you start.
3. Build a feedback loop into the communications process so that
communications can be evaluated to see that they are meeting the
need.
4. Appropriateness of the information; for example is it too much or too
little. If too much it will not be read - too little and it will be ignored.
5. Method of communications electronic/hard copy/internet/intranet for
example. Dont send large multi-megabyte files dont assume
everybody has broadband. It is very easy to fill an inbox and again
this will devalue the communication.
6. Make sure the style is appropriate for the audience. A freeform chatty
style may not be appropriate for senior management. Similarly, formal
communications may not be appropriate for the team members. Dont
assume one size fits all.
7. Language. This is most important if dealing with teams from different
countries and cultures. Ensure that the language is correct and does
not cause offence. Dont use local colloquialisms as these may not be
understood, or may be mis-understood.
8. Regulatory requirements. In some projects formal representation to
government bodies may be required, for example the local planning
authority and in these cases a specified form of words or
presentations may be needed. In one example in Scotland I had to
fold the plans. The authority would not accept plans that were rolled in
a tube and would send the application back and that would have
delayed the application and the project.
9. Configuration management. If more than one version of a document
is required then some form of version control is required and a formal
process for issuing the updated versions and disposing and archiving
of old version.
10. Jargon and acronyms. Beware of using technical jargon and
acronyms in communications. Many people do not know what they
mean but are afraid to ask. If jargon and acronyms must be used
make sure they are defined.
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Section 7.1 Q2
Describe six items that will typically be included in a project communication
plan.
Within any project it is imperative that the communication needs of the
stakeholders is clearly stated. The form for this statement is the
communications plan, which will form part of the PMP and will be prepared
following the stakeholder analysis.
Its content will vary from project to project and organisation to organisation
but typically will include the following:
1. Stakeholder list including name, title, postal address, email and telephone
number. This will ensure that all stakeholders are known and can be
contacted. This is vital information for all members of the team.
2. Stakeholder involvement. This information will explain how the
stakeholder is involved and may contain information about how the
stakeholder should be contacted, e.g. only approach the sponsor after you
have spoken to the project manager.
3. Reports/information required. Contains details of the information each
stakeholder requires; it would inform the reader if a person needed a copy
of a report for example.
4. Report/information provider. Tells the reader who is responsible for
providing the information and the time and frequency at which the
information is required.
5. Format of the communication. Will include how the information is
gathered and distributed, e.g. email, formal reports, informal reports, oral,
written and so forth.
6. Frequency of the communication. Explains how often the information is
distributed, e.g. weekly, monthly, ad hoc.
It is important that the internal stakeholders (i.e. the project team) are
included within this document.
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Teamwork - BoK Topic 7.2

Section 7.2 Q1
c) List nine roles described by Belbin.
d) For each role listed state two strengths and one tolerable weakness.
Note: the following explanatory text is not required by the question. It is
included to aid with revision.
In the 1970s Meredith Belbin used business games to develop a way of
describing the team roles assumed by individuals working together in a team
environment. As a result of his work he identified nine distinct team roles.
These are summarised below. He concluded that successful teams required
a balanced mix of roles, not necessarily one of each type. There is no best
team role; everyone is different. However, it is claimed that everyone has a
preferred team role and a secondary team role that they assume when
working with someone with a greater preference, and a role (or roles) they
should try to avoid. Each role has strengths and tolerable weaknesses.
Belbins Team Roles
Role Strengths Tolerable weakness
Plant Creative, imaginative, Can be a weak communicator.
unorthodox. Solves difficult
problems.
Resource Extrovert, enthusiastic, Tend to lose interest and
Investigator communicative. Explores enthusiasm.
opportunities and develops
contacts.
Co-ordinator Mature, confident, a good Not necessarily the cleverest
chairperson. Clarifies goals, members of a team.
promotes decision-making and
delegates well.
Shaper Challenging, dynamic and Can be aggressive and
thrives on pressure. Has the impatient.
drive and courage to overcome
obstacles.
Monitor Sober, strategic and discerning. Can be over serious or too
Evaluator Sees all the options. Judges critical.
accurately.
Team Co-operative, mild, perceptive They may be indecisive in
Worker and diplomatic. Listens, builds, crunch situations.
averts friction and calms the
waters.
Implementer Disciplined, reliable, May be resistant to new ideas
conservative and efficient. until convinced of their merits.
Turns ideas into practical
actions.
Completer Painstaking, conscientious, May refuse to admit when good
anxious. Searches out errors enough is enough
and omissions. Delivers on
time.
Specialist Single-minded, self starting and Maintain focus on their area of
dedicated. Provides knowledge specialism.
and skills in rare supply.
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Section 7.2 Q2
Explain five stages of team development using a recognised model.
Effective team working develops over time. During that period a lot of
learning and development takes place and the team collectively goes through
a number of developmental phases, classically referred to as Forming,
Storming, Norming and Performing. Latterly, for completeness within a
project management environment, an Adjourning stage has been included.
Stage 1: Forming
This initial stage establishes the foundations upon which the team is
constructed or developed. Typically, team members are unsure of both their
individual objectives and the overall team objectives. They therefore look to
each other and the leader for direction and guidance.
Stage 2: Storming
During this stage team members begin to understand the task, and may
perhaps realise that it is more difficult than they imagined. They are likely to
be uncertain about their own individual objectives and become defensive. If
not well managed, competition between team members may give rise to
conflict.
Stage 3: Norming
During this third stage, team members begin to identify with the team and
reconcile their differences. They begin to realise that if the team succeeds
they all succeed and if the team fails they all fail. As a result, competitive
relationships become more co-operative and team members begin to learn
from each other.
Stage 4: Performing
At this stage, team members have reconciled most of their differences and
communicate openly within the team. They should now be committed to one
another and their objective. As a result, a lot of work gets done, quickly and
efficiently (i.e. the sum is now greater than the parts).
Stage 5: Adjourning/Mourning
This stage is about learning from experience. Both the organisation and
individuals have a lot to gain from this stage. For example, maintenance of
the corporate knowledge base, updating CVs and Continuous Professional
Development (CPD).
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Leadership - BoK Topic 7.3

Section 7.3 Q1
Explain the difference between motivators and hygiene factors.
Maslow expressed this concept in terms of a hierarchy of needs. He
identified five levels as shown below.
Maslows Hierarchy of Needs
Self -
actualisation
Achievement,
Leadership
Companionship,
Belonging
Safety, Protection,
Savings
Sleep, Food, Shelter
This can be adapted for a project situation to give a hierarchy such as that
portrayed below:
Project Hierarchy of needs.
Success
Recognition
of effort
Team building
Processes, procedures,
safety instructions
Site facilities, welfare, offices infrastructure
The first three levels of Maslows hierarchy are concerned with Extrinsic
Factors. That is, the working environment, not with the content of the work.
Herzberg called these hygiene factors and they have the following attributes:
They are not a potent source of satisfaction
Their absence is the cause of dissatisfaction
Their impact on attitudes is relatively short-lived
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They are inflationary.

This is why the carrot and stick approach doesnt work for very long.
Factors predominantly associated with satisfying higher order needs tend to
be Intrinsic Factors, that is, those concerned with the content of the work.
They have the effect of motivating higher performance.
Herzberg called these motivators and they have the following attributes:
Their absence is less likely to cause complaint or dissatisfaction
Their absence causes a lack of satisfaction which leads to apathy and
lack of interest and initiative
Their presence is likely to be highly motivational.
Herzberg suggests the need for a two-pronged approach that removes factors
that distract from performance such as discriminatory promotion policies,
unfair salary systems, poor working conditions, and poor management.
Then seek out ways that enable employees to get more recognition,
challenge, self-fulfilment and satisfaction from their work.
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Section 7.3 Q2
Explain a situational leadership model and show how it may be applied as a
team develops. Include a diagram in your answer.
Situational Leadership styles and the Tuckman model
High
Providing Supportive Behaviour
Low Task High Task

High Relationship High Relationship
Relationship behaviour
(S3) (S2)
Sto
ing rmin
rm g
No
ng
rmi Fo
rfo rm
Pe ing
Low Task High Task

Low Relationship Low Relationship
(S4) (S1)
Low High
Task behaviour
Providing Directive Behaviour
M4 M3 M2 M1
In the diagram above M1 M4 relate to the maturity of the team member with
respect to the task.
At M1 the team member may lack the expertise to undertake the work or may
not have done that type of work before. At this time s/he will require detailed
information and about what to do and will require regular checks. This needs
a telling style of leadership (S1). This is often the case for team members
when the team has just formed the Tuckman level forming.
As the team members become more familiar with the tasks involved and
become more confident they move to M2 and the leader must change their
style to concentrate less on the task requirements and more on the
relationship with the individuals and the team style S2 Selling. This is
often the position as the team is storming, finding its feet and the best fit for
the team members. Work is getting done but there may be some conflict but
to get the team to the norming stage the leader must concentrate on the
people rather than the task the Tuckman level storming.
As the team members find their positions within the team, increase in
confidence and their abilities to do the task, they move to M3 and the
leadership style moves to S3 participating where the leader and the team
members share decision-making and members can contribute towards the
teams success. This will be the case in the norming stage of team
development in the Tuckman model.
Finally, as the team starts to perform and enters the performing stage the
leader can adopt a delegating style of leadership (S4) as the members have
reached the M4 level of maturity and are capable of running their own show.
The team become self-directed and has reached the performing stage of the
Tuckman model.
If the team changes then the leadership style may also have to change to
reflect the change in status of the team. Individuals may also move up and
down the M1 M4 spectrum if new tasks are introduced where staff have little
or no experience and again the leadership style must change to
accommodate this.
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Conflict Management - BoK Topic 7.4

Section 7.4 Q1
Explain five different approaches that could be used in a conflict situation and
give an example of when each approach would be relevant.
NB. The answer given below is longer than you could expect to complete
within 15 minutes but it does give some extra detail that will aid your revision.
Extent of Competing Collaborating

attempts
to satisfy Compromising
own
concerns Avoiding Accommodating
Extent of attempts to satisfy others concerns
The grid above details 5 methods of dealing with conflict. It comes from the
work undertaken by Kenneth Thomas (1975).
Conflict Handling Modes Competing
An individual pursues his own concerns at the other person's expense.
This is a power-oriented mode in which an individual uses whatever power
seems appropriate to win his or her own position. Examples include ability to
argue, economic sanctions and their rank or position. Competing might mean
"standing up for your rights" or defending a position that you believe is
correct. Alternatively, it may be simply about trying to win.
This mode would be most suitable when the team is going through high levels
of conflict, for example in the forming and particularly storming phase. In
order to get the work done decisions must be made and the team leader may
use this style to get things moving and then move into other areas to help the
team get to the norming stage.
Conflict Handling Modes Collaborating
This mode is also known as Problem Solving.
Collaborating involves an attempt to work with the other person to find some
solution that fully satisfies the concerns of both individuals. It means digging
into an issue to identify the underlying concerns of the two people (or groups)
involved in order to find an alternative that meets both sets of concerns.
Collaborating between two persons might take the form of exploring a
disagreement to learn from each other's insights, concluding to resolve some
condition which would otherwise have them competing for resources, or
confronting and trying to find a creative solution to an interpersonal problem.
This mode is most appropriate when problems occur perhaps it is not
possible to complete the work in the way planned and different solutions are
required. An example would be when a project issue is raised.
Conflict Handling Modes - Compromising
The objective is to find some expedient, mutually acceptable solution that
partially satisfies both parties.
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Compromising falls on a middle ground between competing and

accommodating. It gives up more than competing but less than
accommodating. Likewise, it addresses an issue more directly than avoiding,
but doesn't explore it in as much depth as collaborating. Compromising might
mean splitting the differences, exchanging concessions, or seeking a quick
middle ground position.
This would be most useful when neither party feels strongly about a problem
and both would move in some way to get the work completed, for example if
overtime were required it might mean payment and time off in lieu.
Conflict Handling Modes Avoiding
The individual does not immediately pursue his or her own concerns or those
of the other person. The individual concerned does not address the conflict.
Avoiding might take the form of diplomatically sidestepping an issue,
postponing an issue, or simply withdrawing from a threatening situation.
This is likely to occur during the storming stage when it may be necessary for
both parties to avoid the conflict, make progress with the project, and then
move to a collaborative approach when they are surer of their ground and
position in the team.
Conflict Handling Modes Accommodating
When accommodating an individual neglects his or her own concerns in order
to satisfy the concerns of the other person; there is an element of self-
sacrifice in this mode. Accommodating might take the form of selfless
generosity or charity, obeying another person's order when one would prefer
not to, or yielding to another's point of view.
For example, one party may feel that the team leader is taking a course of
action that is inappropriate but in the interests of longer term relationships it
would not be appropriate to stand ones ground. This could easily occur in
the storming stage of teambuilding when the leader is competing.
Specific Example:
If a customer complained about some aspect of the project, it may be initially
best to adopt the accommodating approach with the customer, use competing
with the team to rectify the situation and then use collaboration to ensure the
problem did not occur again.
Compromise with the customer may be necessary if some form of
recompense was required.
It would not be appropriate to use avoiding in this situation, as the situation
must be resolved.
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Section 7.4 Q2
Explain five impacts of avoiding conflict and not resolving it and include a
relevant example.
If conflict is avoided then it can lead to:
1. An escalation of the conflict situation between the parties
concerned. As the conflict escalates it will become progressively
more difficult to deal with and may result drastic action being
taken. For example if there was some dissatisfaction amongst the
labour force and this was not resolved it could escalate into strike
action.
2. Team formation going backwards. If conflict within a team is
avoided then the team will move back through the model to the
storming stage. This will lead to inefficiencies, poor team
motivation and increased stress to all concerned, which could
have the potential for sickness absences and increased costs and
delays.
3. Increased costs. Avoidance of conflict may mean that the project
is being undertaken in an inefficient manner because the team
leader or project manager is not prepared to tackle the situation.
This will ultimately lead to failure and poor team motivation
compounding the situation further.
4. Loss of respect. By not tackling a problem or conflict situation the
project manager or team leader is likely to lose the respect of
his/her team. This will make it difficult to compete the project in a
satisfactory manner and could lead to further conflict throughout
the project life-cycle.
5. Removal from the team. Avoidance of conflict often leads to its
escalation and it becomes more difficult to resolve. The final
option may well be to remove the persons concerned from the
project team entirely. This affects the individuals concerned and
the rest of team who, in many cases, have taken sides. This is
going to make resolution and further team building as the
personnel are replaced that much more difficult.
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Negotiation - BoK Topic 7.5

Section 7.5 Q1
Explain four stages that an effective negotiation should progress through.
A structured process gives the negotiator a framework and some checks on
progress.
Preparation. During the preparation stage it is important for the negotiators
to understand the issue/problem, study relevant material, learn about
opponents objectives (if possible) and this should avoid surprises, anticipate
opponents strategies, define their own objectives and priorities, define their
own negotiating strategy and allocate roles and responsibilities. This will
include deciding which member of the team will lead the negotiation, the
member who is to take notes and the member who will observe. The team
should establish what they are prepared to trade and establish their bottom
line. As well as deciding upon their bottom line the team should also
anticipate the other partys bottom line and areas of potential trade.
Discuss. Trade information and check any assumptions you have made
about the other party. At this point you may have to change your expectations
in light of some information gained from the other party. You should also be
looking for signals from the other party as to interest points and areas they will
not discuss. Time spent at this step will assist the process later. This will
involve the note taker in keeping notes of the discussions made, any phrases
that may indicate that the other party is prepared to trade (e.g. normally,
mostly we.., there may be possibilities). The observer should be
concentrating on the responses of the other party to the statements made
during the discussion. It is often useful after this step to take a short break so
that the information gathered by the negotiator, observer and note taker can
be analysed and the negotiation strategy improved.
Propose and bargain. The opening bids. These should be made in the
expectation of a counter bid. If they get rejected then you have missed
something in the discuss step, go back. If a counter bid is made then you
move into bargaining to get closer to a deal. Opening and later bids should
always be made in format of If you .. then we. followed by counter-
proposals, adjusting till you come to an acceptable agreement. During this
stage it is again useful to break off to analyse the information gained by the
team. This also stops hasty decisions being made and can lead to a better
deal for all concerned.
Closing. It is important to confirm the agreement and record the results of
the negotiation. This should be a written record that all parties can sign and
leave the negotiating table with an accurate and complete record of the
agreement achieved. This is most important, as you want to avoid any
comeback or misunderstandings later. When the agreement is written up
both parties should be prepared to scrutinise it carefully and make sure that
the common agreement reached orally has been transcribed accurately into
the written form. This may require some minor adjustments until the final
document is agreed.
Version 8.2
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APMP

Copyright David W Atkinson 2011

Section 1 Introduction ...................................................................................... 1

Project Risk Management - BoK Topic 2.5 ..........................................................................71

PRINCE2 is a Trade Mark of the Office of Government Commerce

Section 2 Examination Guidance

Hints and Tips

In other words you dont have to be brilliant all round!

Section 3 Sample Questions

Programme Management - BoK Topic 1.2

Portfolio Management - BoK Topic 1.3

Project Context - BoK Topic 1.4

Project Sponsorship - BoK Topic 1.5

Project Office - BoK Topic 1.6

Project Success & Benefits Management - BoK Topic 2.1

Stakeholder Management - BoK Topic 2.2

Project Management Plan - BoK Topic 2.4

Project Risk Management - BoK Topic 2.5

Project Quality Management - BoK Topic 2.6

Health, Safety and Environmental Management - BoK Topic

Scope management - BoK Topic 3.1

Scheduling - BoK Topic 3.2

Questions 1 4 below combine aspects of topics 3.2 (scheduling) and 3.3

Activity Predecessor Duration Resources

Activity Predecessor Duration Resources

Activity Predecessor Duration Resources

Activity Predecessor Duration Resources

Resource Management - BoK Topic 3.3

Budgeting and Cost Management - BoK Topic 3.4

Change Control - BoK Topic 3.5

Earned Value Management - BoK Topic 3.6

All figures for Budget and Actual costs in Man/Hours

A 300 20 65 30 85 50 130 80 180 100 240

B 400 15 70 25 120 40 180 60 250 100 420

C 500 10 90 20 200 50 450 70 600 90 750

D 200 5 12 10 23 20 45 50 110 70 155

E 350 0 0 5 20 15 58 40 150 50 180

TOTALS 1990 237 462 893 1380 1860

Cost Type Amount

Planned Costs 600k

Actual Costs 500k

Earned Value 460k

Cost Type Amount

Planned Costs 700k

Actual Costs 800k

Earned Value 850k

PC 0 5 15 30 50 80 120 140 155 165 170 (000s)

Information Management and Reporting - BoK Topic 3.7

Issue Management - BoK Topic 3.8

Requirements Management - BoK Topic 4.1

Estimating - BoK Topic 4.3

Configuration Management - BoK Topic 4.7

Business Case - BoK Topic 5.1

Procurement - BoK Topic 5.4

Project Life Cycles - BoK Topic 6.1

Handover and Closeout - BoK Topic 6.5

Project Reviews - BoK Topic 6.6

Organisation - BoK Topic 6.7

Organisational Roles - BoK Topic 6.8

Methods and Procedures - BoK Topic 6.9

Governance of a Project - BoK Topic 6.10

Communication - BoK Topic 7.1

Teamwork - BoK Topic 7.2